B Co acquired a non-current asset on 1 January 2007 for $80,000. It had no residual value and a useful ife of ten years. On 1 January 2010 the remaining useful life was reviewed and revised to four years. What will be the depreciation charge for 2010?

B Co acquired a non-current asset on 1 January 2007 for $80,000. It had no residual value and a useful ife of ten years. On 1 January 2010 the remaining useful life was reviewed and revised to four years. What will be the depreciation charge for 2010?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

B Co acquired a non-current asset on 1 January 2007 for $80,000. It had no residual value and a useful
ife of ten years. On 1 January 2010 the remaining useful life was reviewed and revised to four years.
What will be the depreciation charge for 2010?

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