A business purchased a machine on the Ist January 2018 at a cost of £100,000. At the time of acquisition, the useful economic life was estimated to be 5 years. It is anticipated that in 5 years' time it might be worth £40,000 although the current selling price of an equivalent machine of 5 years old is £20,000. What is the depreciation charge for the period ending 31 December year 2020? a) £16,000 b) £12,000 c) £8,000 d) £4,000
A business purchased a machine on the Ist January 2018 at a cost of £100,000. At the time of acquisition, the useful economic life was estimated to be 5 years. It is anticipated that in 5 years' time it might be worth £40,000 although the current selling price of an equivalent machine of 5 years old is £20,000. What is the depreciation charge for the period ending 31 December year 2020? a) £16,000 b) £12,000 c) £8,000 d) £4,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 9MCQ: Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a...
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