employer payroll tax rate is 33 Optional deductions charity

employer payroll tax rate is 33%. Optional deductions (charity donations) are €1,100 On N ovember 17, 2017, a large telecommunication antenna is damaged by strong winds and it is beyond repair. The company bought the antenna at the beginning of 2015 for 38,000, assigning an estimated useful life of 7 years and a residual value of 3,000 (assume straight-line depreciation). The company believes that the damaged equipment is now worth 500 as scrap metal 4 LowePro Co.Inc. decides to award its shareholders a dividend of 16,000, distributing to

Solution

Purchase year= 2015
Purchase price = 38000
Useful life = 7 years
Residual value = 3000
Depreciation per year as per staright line method = 38000-3000/7 = 5000 per year
Total accumulated depreciation = 3 years * 5000 = 15000
Written down value = 38000-15000 = 23000
Current worth of equipment = 500.
So, it is preferable to writedown the equipment to the market value
Loss on disposal = 23000-500 = 22500
Journal entry:
Dr Accumulated depreciation 15000
Dr Loss on disposal 22500
   Cr Equipment 37500