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Demolition Co purchases a machine for $15000. After incurring transportation costs of $1300 and spending $2500 on installing the machine the company are disappointed when it breaks down and costs $600 to repair.Depreciation is charged at 10% per annum with full year’s charge in the year of acquisition.
What is the net book value of the machine that will be shown in Demolition’s statement of financial position at the year end?
l consider that the solution is:
$15000+$1300+$2500=$18800
=18800*10%=1880
answer=18800-1880=$16920
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