Jephson and Sons has a financial year end of 31 December. At 1 January 20X5 the financial statements showed the following balances. Plant and machinery cost £74980 Plant and machinery accumulated depreciation £37430 On 1 June 20X5 a new machine was purchased for £15900. On 30 September 20X5 a machine, the original cost of which was £16000 and which had accumulated depreciation of £4530 at 1 January 20X5, was sold for £5690. The business's depreciation policy for plant and machinery is 20% straight-line, with a full year's depreciation charged in the year of acquisition and no charge in the year of disposal. What is the depreciation expense for plant and machinery for the year ended 31 December 20X5?
Jephson and Sons has a financial year end of 31 December. At 1 January 20X5 the financial statements showed the following balances.
Plant and machinery cost £74980
Plant and machinery
On 1 June 20X5 a new machine was purchased for £15900.
On 30 September 20X5 a machine, the original cost of which was £16000 and which had accumulated depreciation of £4530 at 1 January 20X5, was sold for £5690.
The business's depreciation policy for plant and machinery is 20% straight-line, with a full year's depreciation charged in the year of acquisition and no charge in the year of disposal.
What is the depreciation expense for plant and machinery for the year ended 31 December 20X5?
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