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Pump  No. 1 30,340

On 1 September 2015 the old pump No. 1 was disposed for $22,000. New wine pump  No. 2 cost $60,000 purchased on the same date with another $12,000 paid for installation costs. Also $2,000 was paid for removal costs of the pump No. 1. The new wine pump No. 2 was installed ready for use on 1 November 2015. 

All amounts exclude GST.

  • A. Complete a depreciation schedule for the income year ended 30 June 2016.
  • B. Show workings and section references.

my question is that the effective life of wine pump is 15 years.

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