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I don’t get why they depreciated with 5 years life and not by 4 years as clearly stated that plant was not more than 4 years.
We have to take lower of both right?The question says:
“No plant is more than 4 years old”
That doesn’t mean that the plant has only a four year life expectancy!
That sentence is telling you that all the plant in the trial balance is still within its 5 year expected life and that none of that plant has therefore been fully depreciated
You really need to be very careful how you read these questions!
OK?
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