# SITXFIN005.docx - Student Name: _ Student ID: _ Task: _...

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Student Name:__________________________Student ID:__________________________Task:__________________________Trainer:__________________________Course:__________________________Unit:__________________________Task 1 -Short Q & AQ1. Briefly explain the following physical asset terms:-Smartmeter – “Smartmeter” is a term used to describe a new style of electricity thatmeasures electricity at short intervals every hour or 30 minutes.Novated lease- Novated lease is a three-way agreement between an employer, an employeeand a finance company about car leases.1 |P a g e
Q2. Using the straight-line depreciation method; calculate the depreciation each year for five yearsafter the purchase of the following asset.
Q3. Using the double diminishing balance depreciation method; calculate the depreciation each yearfor five years after the purchase of the following asset.
2 |P a g e
Depreciation = \$ 15, 000 x (365/365) x (200% / 5)= \$ 15, 000 x 1 x 40%= \$ 6, 000New Value = \$ 9, 000Third year:Depreciation = \$ 9, 000 x (365/365) x (200% / 5)= \$ 9, 000 x 1 x 40%= \$ 3, 600New value = \$ 5, 400Fourth year:Depreciation = \$ 5, 400 x (365/365) x (200% / 5)= \$ 5, 400 x 1 x 40%= \$ 2, 160New value = \$ 3, 240However, as the residual value of the printer is \$ 4, 000, therefore, in the fourth year only adepreciation of \$ 1400 is possible. There will be no more depreciation for the fifth year, asthe depreciation will be zero.Fifth year:Depreciation = \$ 0 x (365/365) x (200% / 5)= \$ 0 x 1 x 40%= \$ 0

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Term
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Accountant
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