2102AFE Financial Accounting – Magpie Ltd uses many kinds of machines
Topic 6 – Regulation, PP&E and Intangibles Question 1 Magpie Ltd uses many kinds of machines in its operations. It constructs some of these machines itself and acquires others from the manufacturers. Machine A was acquired on 1 July 2017. Machine A has a useful life of 5 years and has a zero residual value. The Machine A is depreciated on a straight-line basis. The following information relates to Machine A that it has recorded in the 2017–18 period. Machine A Cash paid for machine A, including GST of $8,000 Costs of transporting machine — insurance and transport Labour costs of installation by expert fitter Labour costs of testing machine Insurance costs for 2017–18 Costs of training for personnel who…
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