Hi, I felt very confident about this topic, but unexpectedly, I ended up failing it. Based on the EDX course on reducing balance depreciation, I calculated it differently. But any one could tell me why they in q3 reducing balance depr. didnt folow -‘ the depreciation percentage is applied to a smaller figure each year, resulting in a lower depreciation charge each year’? Or this is not similar to Diminishing – balance depr.? Thnx
But the answer does follow that rule. (Have you looked at the answer by clicking on ‘review quiz’ after submitting your answers?) And have you watched our free lectures on this topic?
Qn 2. Why did we subtract the 30,000? Why do we have to add the depreciation expense from Jan 2014 to Oct 2014 even though the machine is sold on 1 Jan 2014?
Hi, I felt very confident about this topic, but unexpectedly, I ended up failing it. Based on the EDX course on reducing balance depreciation, I calculated it differently. But any one could tell me why they in q3 reducing balance depr. didnt folow -‘ the depreciation percentage is applied to a smaller figure each year, resulting in a lower depreciation charge each year’? Or this is not similar to Diminishing – balance depr.? Thnx
But the answer does follow that rule. (Have you looked at the answer by clicking on ‘review quiz’ after submitting your answers?)
And have you watched our free lectures on this topic?
Sir question 3 it says no depreciation charge in the year of sale, so the answer should not have depreciation for year 2012? am i wrong?
oh i was wrong about the date of sale, it turned next year
Qn 2. Why did we subtract the 30,000? Why do we have to add the depreciation expense from Jan 2014 to Oct 2014 even though the machine is sold on 1 Jan 2014?
Thank you in advance.
It was sold on 1 Jan 2014, but this is during the accounting period ending on 31 October 2014 (i.e. from 1 November 2013 to 31 October 2014).
Hi, Could you please help me to understand Q2,
Why do we have to add the depreciation expense from Jan 2014 to Oct 2014 even though the machine is sold on 1 Jan 2014?
Thank you in advance.