(5 Marks) Question 1: Depreciation On 1 January 2017, machinery was purchased at a total cost of K 120 000. The estimated useful life of the machinery was 4 years with an estimated residual value of K 10000. The company followed straight-line depreciation. The entity's reporting period ends on 31 December. Required a. Calculate the annual depreciation using the straight line method.
b. Prepare journal entries and show machinery account for the period 2017 – 2020.​

Tara incorporates her sole proprietorship, transferring it to newly formed black corporation. the assets transferred have an adjusted basis of $240,000 and a fair market value of $300,000. also transferred was $10,000 in liabilities, $1,000 of which was personal and the balance of $9,000 being business related. in return for these transfers, tara receives all of the stock in black corporation. a. black corporation has a basis of $241,000 in the property. b. black corporation has a basis of $240,000 in the property. c. tara’s basis in the black corporation stock is $241,000. d. tara’s basis in the black corporation stock is $249,000. e. none of the above.

Awidower devised his fee simple interest in his residence as follows: “to my daughter for life, then to my oldest grandchild who survives her.” at the time of the widower’s death, he was survived by his only two children, a son and a daughter, and by one grandchild, his daughter’s son. a short time later, the daughter together with her son entered into a contract to sell the residence in fee simple to a buyer. the applicable jurisdiction continues to follow the common law rule against perpetuities, but has abrogated the rule in shelley’s case. at the closing, the buyer refused to purchase the residence. can the sellers compel the buyer to do so?

When the amount for land is 36,000 and the amount paid for expenses is 10,000, the balance of total asset is