Imran Limited importedtechnical machinery costing Rs. 300,000 on July 01, 2003. It further incurredthe following expenses on the machinery:
- Import duty Rs.100,000
- Non-refundable taxes Rs.5,000
- Transportation cost Rs. 6,000to bring the machinery to factory premises
- Insurance in transit Rs.4,000
Initially the useful life wasestimated to be five years and depreciation was provided on straight-linebasis. The estimated break up value was Rs. 15,000.
During the year 2004-05 thecompany estimated the remaining life of the machinery to be five yearsinstead of four years. The break up value was re-estimated at Rs.20,000. The machinery was sold on July01, 2006 for Rs. 280,000
Required:
1. Calculate the cost of machinery
2. Calculate the depreciation rate ( Initial and Revised)
3. Calculate the depreciable amount of machinery at initial stage
4. Calculate the depreciation expense of machinery for the year ended June 30, 2004
5. Calculate the book value of machinery for the year ended June 30, 2004
6. Calculate the depreciation expense of machinery for the year ended June 30, 2005