Black Power Ltd is a company manufacturing safety shoes. They purchased a sophisticated piece of machinery at the beginning of 2006 for $364 500. The machine had a useful life of 9 years. The machine has a useful life of 9 years. The net replacement cost was as follows:
Beginning of year 2007 $ 350 000
Beginning of year 2008 $ 315 000
Beginning of year 2009 $ 232 500
Beginning of year 2010 $ 200 000
Required
a) Determine the amounts to be in the statement of profit or loss and other
Comprehensive income from year 2006 to 2010. (15 marks)
b) Disclose the amounts in the statement of profit or loss and other comprehensive income for the years ended 31 December 2006 through to 2010. (5 marks)
