How did the examiner arrive at depreciation and additions amount?Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › How did the examiner arrive at depreciation and additions amount?This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts November 30, 2018 at 11:30 am #486566 msk29MemberTopics: 82Replies: 65☆☆Hello!This qn is referring to KODIAK COMPANY (DEC 09).How did they arrive at the figures? Can you please specify where I could be wrong.depr = 10% * 1266 = 127 additions = 127 + (1266*1.20) – 1266 = 380Thank you. November 30, 2018 at 3:54 pm #486590 John MoffatKeymasterTopics: 57Replies: 54702☆☆☆☆☆Firstly, note 1 of the question says that the depreciation is 10% on the balance before the accumulated depreciation – so it is 10% of cost.Secondly, the investment in new NCA’s grows by 20%. So 66 x 1.2 = 79.Therefore the cost of NCA’s is 1,266 + 79 = 1,345Therefore depreciation is 10% x 1,345 = 134.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In