Oriole plc purchased a computer for £9.440 on January 1, 2021. Straight-line depreciation is used, based on a 5-year life and a £1,180 residual value. In 2023, the estimates are revised. Oriole now feels the computer will be used until December 31, 2024, when it can be sold for £590. Compute the 2023 depreciation.

Oriole plc purchased a computer for £9.440 on January 1, 2021. Straight-line depreciation is used, based on a 5-year life and a £1,180 residual value. In 2023, the estimates are revised. Oriole now feels the computer will be used until December 31, 2024, when it can be sold for £590. Compute the 2023 depreciation.

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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Question

Oriole plc purchased a computer for £9.440 on January 1, 2021. Straight-line depreciation is used, based on a 5-year life and a £1,180
residual value. In 2023, the estimates are revised. Oriole now feels the computer will be used until December 31, 2024, when it can be
sold for £590.
Compute the 2023 depreciation.

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