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The plant and machinery at cost account of a business for the year ended 30 June 20X4 was as follows:
20X3 20X3
1 Jul Balance 240,000$ 30 Sep Transfer disposal account 60,000$20X4 20X4
1 Jan Cash – purchase of plant 160,000$ 30 Jun Balance 340,000$
400,000 400,000he company’s policy is to charge depreciation at 20% per year on the straight line basis, with
proportionate depreciation in the years of purchase and disposal.
What should be the depreciation charge for the year ended 30 June 20X4?A $68,000
B $64,000
C $61,000
D $55,000
(2 marks)You should ask this in the relevant Ask the Tutor Forum (since this is a Paper FA question then it is the Paper FA Ask the Tutor Forum).
Have you watched our free lectures on depreciation? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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