Fixed Assets & Depreciation At 31 July 20X6, Apollon International had non-current assets which had cost $310,000. At the same date, the accumulated depreciation on the assets was $120,000. The company had not disposed of any non-current assets during the year to 31 July 20X7 but acquired an asset at a cost of $79,200 on 1 January 20X7. Apollon International depreciates non-current assets at a rate of 25% per annum. Required: Compute the company’s depreciation charge for the year to 31 July 20X7 using: The straight-line method The reducing balance method Assume that depreciation is charged from the first year of acquisition with a full year’s charge.
Fixed Assets & Depreciation At 31 July 20X6, Apollon International had non-current assets which had cost $310,000. At the same date, the accumulated depreciation on the assets was $120,000. The company had not disposed of any non-current assets during the year to 31 July 20X7 but acquired an asset at a cost of $79,200 on 1 January 20X7. Apollon International depreciates non-current assets at a rate of 25% per annum. Required: Compute the company’s depreciation charge for the year to 31 July 20X7 using: The straight-line method The reducing balance method Assume that depreciation is charged from the first year of acquisition with a full year’s charge.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Fixed Assets &
At 31 July 20X6, Apollon International had non-current assets which had cost $310,000. At the same date, the
Required:
Compute the company’s depreciation charge for the year to 31 July 20X7 using:
- The straight-line method
- The
reducing balance method
Assume that depreciation is charged from the first year of acquisition with a full year’s charge.
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