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Hello Proffesor,
I have problems with this excercise:
Kai has been running a successful nursery school ‘Little Imps’ since 20X1. Kai bought the following assets as the nursery expanded:a new oven for the nursery kitchen at a cost of $2,000 (purchased 1 December 20X4).a minibus to take the children on trips for $18,000 (purchased 1 June 20X4).Kai depreciates the oven at 10% straight line and the minibus at 25% reducing balance. A full year’s depreciation is charged in the year of purchase and none in the year of disposal.What is the total depreciation charge for the year ended 31 October 20X6?
What is the total depreciation charge for the year ended 31 October 20X6?
I got as anwear 4700 $, but thats not in answers, so I would appriciate if you can help me. Thank you
Depreciation on the oven is 10% x 2,000 = 200
Depreciation on the minibus was 4500 in 20X4, 3375 in 20X5 and 2531 in 20X6
Have you watched my free lectures on depreciation?
Hello, please can you explain me this question:
Vernon Vinyl purchased some new equipment on 1 April 20X1 for his mobile disco for $6,000.
The estimated scrap value of the new equipment in 5 years’ time is estimated to be $400.
Vernon charges depreciation on the straight line basis, with a proportionate charge in the period of acquisition.
What should the depreciation charge for the plant be in Vernon’s accounting period of twelve months to 30 September 20X1?
idk how to get solution, thanks!
He owned the equipment for 6 months of the accounting period (1 April to 30 September) and so the depreciation is 6/12 x ((6000 – 400) /5).
Yet again this is all explained in my free lectures. There is no point in attempting questions for which you do not have answers and if you have not studied the topics first.
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