Cumulative catch-up method, Taxation

Assignment Help:

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.


Related Discussions:- Cumulative catch-up method

Compute taxable income, Kline Company, an accrual basis calendar year corpo...

Kline Company, an accrual basis calendar year corporation, reported $560,000 net income before tax on its financial statements prepared in accordance with GAAP for 2011. Kline's re

Capital gains, Dan and Cheryl are married , file a joint return, and have n...

Dan and Cheryl are married , file a joint return, and have no children. Dan , age 45, is a pharmaceutial salesman and Cheryl, age 42, is a nurse at a local hospital . Dan''s SSN is

Tax, which type of tax, direct or indirect is applicable in any country (ex...

which type of tax, direct or indirect is applicable in any country (example underdeveloped countries)? Why? Show your critical areas and weaknesses.

Calculate the equipments after-tax net salvage value, Net Salvage Value ...

Net Salvage Value Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $24 million, of which 80% has been depreciated. The used

Calculate any tax payable, The will of B Dark, who died on 31 March of the ...

The will of B Dark, who died on 31 March of the previous income year, provides that after payments of debts and legacies the residue of the estate is to be held in trust and the in

Calculate fiduciary income, Jack Green established the Jackson Trust by a g...

Jack Green established the Jackson Trust by a gift in 1999. The trust instrument requires that the trustee (Fifth-Fourth Bank) distribute all of the trust income at least annually

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd