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section B revision Kit bpp Deringgdo co otq 2019

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › section B revision Kit bpp Deringgdo co otq 2019

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 6, 2020 at 9:33 am #572960
    sarimacca
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    The solution, uses 10% which isn’t mentioned in the question. I’m confused where it comes from, as cost was 800,000 and residual value equal to 15%, depreciation on straight line basis for 10 yrs. Gov grant of 30% of cost.

    June 7, 2020 at 10:52 am #573036
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7231
    • ☆☆☆☆☆

    Hi,

    Depreciating the asset over 10 years is the same as charging 10% each year (i.e. 1/10 = 0.1 = 10%)

    Thanks

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