Wether purchased a machine on 1 July 2007 for GHS500,000. It is being depreciated on a straight line basis over its expected life of ten years. Residual value is estimated at GHS20,000. On 1 January 2008, following a change in legislation, Wether fitted a safety guard to the machine. The safety guard cost GHS25,000 and has a useful life of five years with no residual value. What amount will be charged to profit or loss for the year ended 31 March 2008 in respect of depreciation on this machine?

Wether purchased a machine on 1 July 2007 for GHS500,000. It is being depreciated on a straight line basis over its expected life of ten years. Residual value is estimated at GHS20,000. On 1 January 2008, following a change in legislation, Wether fitted a safety guard to the machine. The safety guard cost GHS25,000 and has a useful life of five years with no residual value. What amount will be charged to profit or loss for the year ended 31 March 2008 in respect of depreciation on this machine?

Name: Wether purchased a machine on 1 July 2007for GHS500,000. It is being
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Description: Wether purchased a machine on 1 July 2007for GHS500,000. It is being depreciated on astraight line basis over its expected life often years. Residual value is estimated atGHS20,000. On 1 January 2008, following achange in legislation, Wether fitted

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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