[caoimhin23]

Ok but how is the contribution =6400?

Where did this figure come from?

8y= 8*800. If your dividing 8 into 6400 but where did 6400 come from in the first place?

[caoimhin23]

Thanks,

No it doesn’t mention anything.

The Note in the question is

On January 2007 Hardy owned some items of equipment with Book Value of 45m that had a fair value of 57m. These were originally purchased by hardy on 1 January 2005 and are being depreciated over 6 years..

The year end for the question is 31dec 2009..

Just not sure where the depreciation figure is coming from

57-45= 12m

Extra Depreciation = 12m *3/4??

[caoimhin23]

hi john,

But if its one month worth of production is that not 159,000 divided by 12?

As production is 159,000. so is the closing inventory wrong

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