Amotor vehicle which cost £30,000 Is depreciated at 20% per annum using the reducing balance method. The depreciation charge for the second year would be: a. E13,800 b.£8,000 C. £4,800 24,000x20%-£4,800 d.£7,200

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Chapter1: Financial Statements And Business Decisions
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QUESTION 9
Amotor vehicle which cost £30,000 is depreciated at 20% per annum using the reducing balance
method. The depreciation charge for the second
year
would be:
a. £13,800
b.E8,000
c. £4,800
24,000x20%=£4,800
d.£7,200
Transcribed Image Text:QUESTION 9 Amotor vehicle which cost £30,000 is depreciated at 20% per annum using the reducing balance method. The depreciation charge for the second year would be: a. £13,800 b.E8,000 c. £4,800 24,000x20%=£4,800 d.£7,200
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