1A company purchases a machine for R18,500 and pays R2,500 for freight and setup. What is the total initial cost (capitalized value) of the machine?
2A firm buys a machine for R20,000 with an estimated useful life of 5 years and a residual value of R2,000. Using the straight-line method, what is the annual depreciation expense?
3Which of the following components are typically included in a depreciation schedule table?
4Using the Sum-of-the-Years'-Digits (SYD) method for an asset with a useful life of 5 years, what is the denominator used to calculate the depreciation fraction?
5An asset has an original cost of R70,000 and a salvage value of R10,000. If the total expected production is 6,000 units, what is the depreciation per unit using the units of production method?
6If a company uses the double-declining balance method for an asset with a useful life of 8 years, what is the constant depreciation rate applied to the book value?
7According to the provided documents, which of the following expenses are added to the purchase price to determine the total cost of an asset?
8A delivery truck is purchased for R500,000 with a salvage value of R50,000 and a life of 5 years. What is the total amount of accumulated depreciation at the end of Year 2 using the straight-line method?
9XYZ Ltd buys a machine for R49,000, plus transport costs of R6,000 and installation of R7,500. What is the initial carrying value to be entered into the depreciation schedule?
10Which depreciation method results in a fixed, equal amount of depreciation expense every year throughout the asset's useful life?
