C. On 1 January 2019 (Year 1), SUKA Berhad purchased a machinery under the following...

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C. On 1 January 2019 (Year 1), SUKA Berhad purchased a machinery under the following terms: RM Invoice price 82,000 Import duty 2,500 Transportation charges 3,000 Electrical installation costs 9,500 Pre-production testing 5,900 Purchase of 5-year maintenance plan 7,000 In addition to the above information, SUKA Berhad was granted a trade discount of 15% on the initial invoice price of the asset and a settlement discount of 5% cash for payment received within 15 days of purchase. SUKA Berhad paid for the machinery on 20 January 2019. The machinery was used in production on 5 January 2019. The estimated useful life of the machinery is eight years, or it can produce 200,000 units and its residual value is RM4,000. During 2019 and 2020, the machinery produced 23,000 units and 50,000 units, respectively. The depreciation rate for the diminishing balance method is 20% on book value. Required: 1. Determine the acquisition cost of the machine. Journalise the purchase transaction. 2. Compute the depreciation expense for the year 2020 (Year 2) under the following methods: () Straight-line (ii) Units of output (iii) Diminishing balance 3. Journalise the depreciation expense at, 31 December 2020 (Year 2). 4. Prepare an extract of the statement of financial position to show the non-current asset

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