Cumulative catch-up method, Taxation

Mann Limited purchased machinery  on 1 January 20.9, on which date it was estimated to have a useful life of 5 years and a nil residual value. The carrying amount on 31 December 20.10 was:

Cost (1/1/20.9)                                                                                         R500 000

Accumulated depreciation                                                                          R200 000

Net carrying amount (31/12/2010)                                                             R300 000

On the 1/1/20.11, the remaining economic useful life was estimated to be 2 years.

REQUIRED

Disclose the change in estimate using the re-allocation method.

Disclose the change in estimate using the cumulative catch-up method.

Posted Date: 2/27/2013 2:38:20 AM | Location : United States







Related Discussions:- Cumulative catch-up method, Assignment Help, Ask Question on Cumulative catch-up method, Get Answer, Expert's Help, Cumulative catch-up method Discussions

Write discussion on Cumulative catch-up method
Your posts are moderated
Related Questions
Problems for Benchmark HW: There are issues here that were not covered in live lecture, but here are some issues that you need to be conscious of when attempting the problems. t

Maskot Industries wishes to determine whether it would be advisable to replace an existing, fully depreciated machine with a new piece of equipment. The new machine will cost $300,


A client of Investment Advisor Associates (IAA), Gillian Bissett, has recently won $5 million in the lottery and has asked for investment advice. She has indicated that she would l


Sale of a Principal Residence. Marc, age 45, sells his personal residence on May 15, 2014, for $180,000. He pays $8,000 in selling expenses and $900 in repair expenses to help sell

The taxpayer exchanges property in 2010 with a fair market value of $5,500,000 that has a basis of $750,000. The property is also subject to a mortgage of $2,500,000. The taxpaye

Clem paid self-employment tax of $14,200 and Wanda had $3,000 of Social Security taxes withheld from her pay. Determine deductible amount for AGI

Avis's taxable income for the year is $300,000 and Best's taxable income for the year is $425,000. For each of the scenarios provided, (a) state if a control group has been created

28) Explain how Treasury Department Circular 230 differs from the AICPA’s Statements on Standards for Tax Services.