A business buys a machine for £60,000 and depreciates it at 10% per annum by the reducing instalment method. What is the depreciation charge for the second year of the machine’s use? A £4,800 B £4,860 C £5,400 D £6,000
A business buys a machine for £60,000 and depreciates it at 10% per annum by the reducing instalment method. What is the depreciation charge for the second year of the machine’s use? A £4,800 B £4,860 C £5,400 D £6,000
A business buys a machine for £60,000 and depreciates it at 10% per annum by the reducing instalment method. What is the depreciation charge for the second year of the machine’s use? A £4,800 B £4,860 C £5,400 D £6,000
A business buys a machine for £60,000 and depreciates it at 10% per annum by the
reducing instalment method. What is the depreciation charge for the second year of
the machine’s use?
A £4,800
B £4,860
C £5,400
D £6,000
Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video
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