Que: 3 A company purchased a fixed asset on 1-1-2017 for OMR 100,000 and decided to depreciate it at 10% per annum on straight-line basis. The replacement value of the asset on the following dates was noted as follows 31.12.2017-----OMR 120,000 31.12.2018----OMR 150,000 31.12.2019---OMR 200,000 Assuming depreciation is chargeable on the basis of the year-end replacement value. Under CCA method of inflation accounting, you are required to compute for each of the 3 years: 1. Depreciation adjustment 2. Backlog depreciation

Que: 3 A company purchased a fixed asset on 1-1-2017 for OMR 100,000 and decided to depreciate it at 10% per annum on straight-line basis. The replacement value of the asset on the following dates was noted as follows 31.12.2017-----OMR 120,000 31.12.2018----OMR 150,000 31.12.2019---OMR 200,000 Assuming depreciation is chargeable on the basis of the year-end replacement value. Under CCA method of inflation accounting, you are required to compute for each of the 3 years: 1. Depreciation adjustment 2. Backlog depreciation

Name: Que: 3 A company purchased a fixed asset on 1-1-2017 for OMR 100,000
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Description: Que: 3 A company purchased a fixed asset on 1-1-2017 for OMR 100,000 and decided todepreciate it at 10% per annum on straight-line basis. The replacement value of the asseton the following dates was noted as follows31.12.2017----OMR 120,00031.12.201

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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