The following balances were obtained from the Pre-adjustment Trial Balance of Super Traders on 30 June 2023, the end of the financial year: Vehicles R900 000; Equipment R600 000; Accumulated depreciation on vehicles on 01 July 2022 R360 000; Accumulated depreciation on equipment on 01 July 2022 R180 000 . Depreciation for the year ended 30 June 2023 was calculated as follows: On vehides at \( 20 \% \) per year using the diminishing balance method; On equipment at \( 10 \% 6 \) per year on cost. How much is the total carrying value of property, plant and equipment as at 30 June 2023?

To calculate the total carrying value of property, plant, and equipment (PPE) as at 30 June 2023, we need to determine the carrying values of both vehicles and equipment after accounting for depreciation. ### Step 1: Calculate Depreciation for Vehicles 1. **Cost of Vehicles**: R900,000 2. **Accumulated Depreciation on Vehicles (as of 01 July 2022)**: R360,000 3. **Depreciation Rate**: 20% per year (diminishing balance method) **Depreciation for the year ended 30 June 2023**: \[ \text{Depreciation} = \text{Cost} \times \text{Depreciation Rate} = R900,000 \times 20\% = R180,000 \] **Total Accumulated Depreciation on Vehicles as of 30 June 2023**: \[ \text{Total Accumulated Depreciation} = \text{Previous Accumulated Depreciation} + \text{Current Year Depreciation} = R360,000 + R180,000 = R540,000 \] **Carrying Value of Vehicles as of 30 June 2023**: \[ \text{Carrying Value} = \text{Cost} - \text{Total Accumulated Depreciation} = R900,000 - R540,000 = R360,000 \] ### Step 2: Calculate Depreciation for Equipment 1. **Cost of Equipment**: R600,000 2. **Accumulated Depreciation on Equipment (as of 01 July 2022)**: R180,000 3. **Depreciation Rate**: 10% per year (on cost) **Depreciation for the year ended 30 June 2023**: \[ \text{Depreciation} = \text{Cost} \times \text{Depreciation Rate} = R600,000 \times 10\% = R60,000 \] **Total Accumulated Depreciation on Equipment as of 30 June 2023**: \[ \text{Total Accumulated Depreciation} = \text{Previous Accumulated Depreciation} + \text{Current Year Depreciation} = R180,000 + R60,000 = R240,000 \] **Carrying Value of Equipment as of 30 June 2023**: \[ \text{Carrying Value} = \text{Cost} - \text{Total Accumulated Depreciation} = R600,000 - R240,000 = R360,000 \] ### Step 3: Calculate Total Carrying Value of Property, Plant, and Equipment **Total Carrying Value**: \[ \text{Total Carrying Value} = \text{Carrying Value of Vehicles} + \text{Carrying Value of Equipment} = R360,000 + R360,000 = R720,000 \] ### Conclusion The total carrying value of property, plant, and equipment as at 30 June 2023 is **R720,000**.