DigiMark is a digital marketing company in the east of Gauteng.
accounting
Description
DigiMark is a digital marketing company in the east of Gauteng. The company requires your assistance to prepare the financial statements and accompanying notes for the reporting period ending 31 December 2019. Digimark is a registered VAT vendor and VAT is levied at 15% on all transactions.
You are provided with the following an extract of the accounting policy note related to
property, plant and equipment as at 31 December 2018:
ADDITIONAL INFORMATION
1. The owner of the company purchased a specialised digital printing machine on 1 April
2017 for R207 000 including VAT. It is anticipated that the machine is capable of being
used for 40 000 hours before it has to be replaced. You are provided with the following
schedule of operating hours related to the machine:
On 30 September 2019, the financial director of the company advises the straight line
method of depreciation would be a more appropriate method to depreciate the
machine and assigns a total useful life of 10 years to the machine. The machine will
still not have a residual value.
