Joe Traders is not a registered VAT vendor. On 1 July 2023, Joe Traders bought...
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Joe Traders is not a registered VAT vendor. On 1 July 2023, Joe Traders bought machinery on credit from Malebo Machines for R83 000. BB Logistics delivered the machinery at an additional cost of R2 200. Malebo Machines sent a technician who installed the machinery and tested its operationality for R5 800. Joe Traders paid the delivery and installation costs with electronic funds transfers. The interest charged on the outstanding amount for the year ended 30 June 2024 was R11 000.
Depreciation is calculated using the straight-line method on machinery over a useful life of 7 years.
Required:What will the depreciation on the machinery be that is recorded in the statement of profit or loss and other comprehensive income for the year ended 30 June 2024?
NB: Instructions
1. Do not type the amount with any spaces as separators for thousands (eg: 12141)
2. Round off to the nearest Rand (eg: 50.56 is 51)
3. Only show the amount, do not show the R (eg: 12141)
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