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Hello
In the above question the lecture gives a receivable figure of $2,000. I do not understand why the depreciation expense would reduce the receivable due, as it is a non cash expense. I would have thought it would be $2,600.
If it is not an error, could you please explain this to me?Kind regards
MichaelHi,
Yes the receivable should be the total of the share of revenue and costs, excluding the depreciation but nit because it is a non-cash item but because it has already been recorded as part of the carrying value of the non-current asset.
I’ll update the video and the notes for the next exam sitting.
Thanks
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