oseph is drawing up his budgets to present to the bank in support of his business loan application for his new business which is starting up on 1 January 2020. Joseph’s capital expenditure budget shows planned expenditure of $45,000 on new plant and machinery in January 2020, $24,000 on a new delivery van in March 2020 and $18,000 on a new computer system in June 2020. Joseph depreciates all his non-current assets on the straight line basis. Computers and computer systems are depreciated over three years with zero estimated residual value, delivery vans over 4 years and plant and machinery over 5 years. Delivery vans and plant and machinery are estimated to have a residual value of 20% of their original cost. What is Joseph’s budgeted depreciation charge in the budgeted statement of profit or loss for May 2020? $1,400 $1,000 $1,500 $1,750
Joseph is drawing up his budgets to present to the bank in support of his business loan application for his new business which is starting up on 1 January 2020. Joseph’s capital expenditure budget shows planned expenditure of $45,000 on new plant and machinery in January 2020, $24,000 on a new delivery van in March 2020 and $18,000 on a new computer system in June 2020. Joseph depreciates all his non-current assets on the straight line basis. Computers and computer systems are depreciated over three years with zero estimated residual value, delivery vans over 4 years and plant and machinery over 5 years. Delivery vans and plant and machinery are estimated to have a residual value of 20% of their original cost. What is Joseph’s budgeted
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