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I want you to help me with the treatment of depreciation in the June 2015 exam question 3. i can’t make sense of how they got the 20% depreciation amount because its no where in the question. thanks
What does it say on the last line of page 14 in the exam paper, or the last line in note (iii) in question 3?
Answer me that and then ask the question again!
You’ve only given me half the line! What does it say in the first half of that line on page 14?
Answer me that and I promise that I shall sort out your confusion for you
Promise 🙂
no depreciation has yet been charged on plant and equipment which should be charged to cost of sales on straight line basis over a five year life (including leased plant). No plant is more than four years old.
Ok, so now we have the information “a five year life”
So we should be looking to depreciate over five years? With me so far?
So one fifth of the cost of the asset will be depreciated each year? Yes?
And how do we express “one fifth” as a percentage?
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