Fixed Assets & Depreciation At 31 July 20X6, Apollon International had non-current assets which had cost $310,000. At the same date, the accumulated depreciation on the assets was $120,000. The company had not disposed of any non-current assets during the year to 31 July 20X7 but acquired an asset at a cost of $79,200 on 1 January 20X7. Apollon International depreciates non-current assets at a rate of 25% per annum. Required: Compute the company’s depreciation charge for the year to 31 July 20X7 using: The straight-line method The reducing balance method Assume that depreciation is charged from the first year of acquisition with a full year’s charge.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
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Fixed Assets & Depreciation

At 31 July 20X6, Apollon International had non-current assets which had cost $310,000. At the same date, the accumulated depreciation on the assets was $120,000. The company had not disposed of any non-current assets during the year to 31 July 20X7 but acquired an asset at a cost of $79,200 on 1 January 20X7. Apollon International depreciates non-current assets at a rate of 25% per annum.

Required:

Compute the company’s depreciation charge for the year to 31 July 20X7 using:

  1. The straight-line method
  2. The reducing balance method

Assume that depreciation is charged from the first year of acquisition with a full year’s charge.

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