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01 Dec 2004 Karen purchase a new oven $2000. She depreciate 10% straight line. A full years depreciation charged in the year of purchase nd none in the the year of disposal.
what is the total depreciation charge for the year ended 31 oct 2006?at 31st oct 2005 -depn charge =$200
at 31st oct 2006-depn charge=$200
,total depn charge=$400I think total depreciation charge FOR THE YEAR ended 31 oct 2006 will be just $200. Only one year is mentioned in question, isn’t it?
I agree Sangria9, the question is asking for “the total depreciation for the year ended”, not “the cumulative depreciation as at”
The question says :The total depreciation charge for the YEAR ENDED 31 OCT 2006 (ie The accounting period covering 1 Nov.2005 to 31 Oct 2006) which is just 1 year . Depreciation expense (for the income statement) for the above accounting period. $200 is the correct answer and not $400 which is Accumulated depreciation for the (Statement of financial position) covering 2 years.
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