Question 7.9

Do you mean 7.9 (as you have written in the heading) or 7.9 (as you have written in the post)?

Yes my apologies 7.9 Arahn

On 1 October the cost of the assets were 200,000 and it stayed at 200,000 until 1 April when they bought more. So the depreciation for the period 1 October to 1 April, which is 6 months, is 6/12 x 20% x 200,000. On 1 April the cost went up to 250,000 and stayed at 250,000 until 30 June. So the depreciation for the period 1 April to 30 June, which is 3 months, is 3/12 x 20% x 250,000. On 30 June the cost went down to 210,000. So the depreciation for the period 30 June to 31 September is 3/12 x 20% x 210,000.

Perfect. Thanks so much John

You are welcome :-)