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Q. Mark acquired a new computer on1 oct 04 for $57500 including recoverable sales tax at 15%.he depreciates all computers straight line at 20% per annum on a monthly basis.
what is carrying amount of the computer at 31 dec 04?
a $46000
b $54625
c $46431
d $47500
iam trying for this for last 2 days but not getting my exams are near plz help me out.hello
i think the correct answer is dmy thoughts
57500/1.15=50000 the price without vat
50000*20%=10000 the depreciation for the whole year
10000*3/12=2500 the depreciation for the three months (oct-nov-dec)
50000-2500=47500 the answer
hi ur correct but i want to know did u get 1.15 and why are u dividing with 57500 plz explain….
and percentage of 15 is 0.15 and really confuesd. explain me
The price includes tax at 15%. The tax is always calculated on the price without tax.
So….if the price without tax is X, then the tax is 0.15X and so the price including tax is 1.15X.
So since we know that the price including tax is 57,500, it means that 1.15X = 57500.
So X = 57500/1.15(It will be a good idea for you to watch the lecture on here about Sales Tax)
sorry i didn’t get again how 0.15x 1.15 or we have to take out the tax frm price
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