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How do I do this question?
Further information:
Printing equipment: cost 24,000
Printing equipment: accumulated depreciation 4,000
Printing equipment expect to last for 6 years and have no residual value at the end of its useful life. The straight-line method of depreciation is used for this asset class
Transaction:
1. The printing equipment breaks down frequently, so Mike and Jean sell it during the period for £6,000. In its place, new printing equipment costing £30,000 is bought for cash on 1st October 2016. The new printing equipment has an expected useful life of 10 years, at the end of which the residual value will be £3,000. The company’s policy with respect to depreciation is to charge a full year’s worth of depreciation in the year of purchase and no depreciation in the year of sale.
Kind regards,
HwanYou have not said what the question requires!!!!
We do not provide answers to test questions. You must have an answer in the same book in which you found the question and so you should ask about whatever it is in the answer you are not clear about.
It seems you are attempting a question before having studied the topic, because this is a very basic question.
You should watch my free lectures on non-current assets – I explain everything needed to be able to attempt the question, with examples.The lectures are a complete free course for Paper FA (F3) and cover everything needed to be able to pass the exam well.
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