Buna Co owns a non-current asset which cost $55,000 on the 1January 20X5. It had a useful life of 20 years and a residual value of $5,000. It is the company’s policy to depreciate assets using the straight line method. On 1 January 20X8, Buna Co estimated that the remaining useful life of the asset was now only 14 years with an expected residual value of $2,000. What is the depreciation charge for the year ending 31 December 20X8?
Buna Co owns a non-current asset which cost $55,000 on the 1January 20X5. It had a useful life of 20 years and a residual value of $5,000. It is the company’s policy to depreciate assets using the straight line method. On 1 January 20X8, Buna Co estimated that the remaining useful life of the asset was now only 14 years with an expected residual value of $2,000. What is the depreciation charge for the year ending 31 December 20X8?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Buna Co owns a non-current asset which cost $55,000 on the 1January 20X5. It had a useful life of 20 years and a residual value of $5,000. It is the company’s policy to
On 1 January 20X8, Buna Co estimated that the remaining useful life of the asset was now only 14 years with an expected residual value of $2,000.
What is the depreciation charge for the year ending 31 December 20X8?
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