2. On 1 January 2020 a company had plant and equipment with a cost of $150.000 and accumulated depreciation thereon of $60,000. During the vear ended 31 December 2020 the cost of plant additions was $30.000 and plant was disposed of with a cost of $20.000 for $18.000. This plant was bought on 30 September 2018. The depreciation policy is to make an allowance of 25% per annum on the declining balance with a full charge in the year of acquisition and none in the vear of disposal. What is the depreciation charge for the year ended 31 December 2020?
2. On 1 January 2020 a company had plant and equipment with a cost of $150.000 and accumulated depreciation thereon of $60,000. During the vear ended 31 December 2020 the cost of plant additions was $30.000 and plant was disposed of with a cost of $20.000 for $18.000. This plant was bought on 30 September 2018. The depreciation policy is to make an allowance of 25% per annum on the declining balance with a full charge in the year of acquisition and none in the vear of disposal. What is the depreciation charge for the year ended 31 December 2020?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...
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![2. On 1 January 2020 a company had plant and equipment with a cost of $150.000 and
accumulated depreciation thereon of $60.000. During the vear ended 31 December 2020 the
cost of plant additions was $30.000 and plant was disposed of with a cost of $20.000 for
$18.000. This plant was bought on 30 September 2018.
The depreciation policy is to make an allowance of 25% per annum on the declining balance
with a full charge in the year of acquisition and none in the vear of disposal.
What is the depreciation charge for the vear ended 31 December 2020?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb247df03-eac0-41d7-bb43-ee2ee2d6a94b%2Fe332a9c4-d8da-4f4c-9228-9441ee4342b4%2Fqokrtj5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. On 1 January 2020 a company had plant and equipment with a cost of $150.000 and
accumulated depreciation thereon of $60.000. During the vear ended 31 December 2020 the
cost of plant additions was $30.000 and plant was disposed of with a cost of $20.000 for
$18.000. This plant was bought on 30 September 2018.
The depreciation policy is to make an allowance of 25% per annum on the declining balance
with a full charge in the year of acquisition and none in the vear of disposal.
What is the depreciation charge for the vear ended 31 December 2020?
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