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At 1jan 20×5, mary had a motor vehicle costing 15000. on 31 aug 20×5 she sold it for 5000 which originally costed 8000 and had a carrying amt of 4000 at date of disposal. she purchased new motor vehicle for 10000 on 30nov 20×5.
mary’s policy is to depre on 25% SLM
depre for 31 dec 20×5?i have got the caln for asset acquired ie 208, but for asset held all year why does soln show 15000-8000? and for asset disposed shouldnt it be calculated on 5000?
I assume that you have not copied the question correctly and that Mary had motor vehicles costing 15,000. If she sells one that originally cost 8,000 then the cost of the cars left must have been 7,000.
The depreciation is calculated on the cost of the cars, not what they were sold for.
Again, do watch my free lectures on this.
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