Gene’s business bought a machine for £72,000 on 1 January 2000 and another one for £96,000 on 1st July 2000. Depreciation is charged at 10% per annum straight line and calculated on a monthly basis. What is the total depreciation charge for the two machines for the year ended 31 December 2000? A £6,000 B £8,400 C £12,000 D £16,800
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Gene’s business bought a machine for £72,000 on 1 January 2000 and another one for
£96,000 on 1st July 2000.
calculated on a monthly basis.
What is the total depreciation charge for the two machines for the year ended 31
December 2000?
A £6,000
B £8,400
C £12,000
D £16,800
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- A business buys a machine for £60,000 and depreciates it at 10% per annum by the reducing instalment method. What is the depreciation charge for the second year of the machine’s use? A £4,800 B £4,860 C £5,400 D £6,000Meta Ltd purchased a new equipment costing £100,000. Its expected useful life is 5 years, at which point it is anticipated that the machine will have a residual value of £14,000. Applying the reducing-balance method of depreciation at 32.5% per annum, how much is the annual depreciation charge in Year 2?Ellison & Partners bought machinery for £300,000 on 1 January 1995, and have depreciated it at 10% per annum by the reducing instalment method. What is the depreciation charge for the year ended 31 December 1997? A £21,870 B £24,300 C £27,000 D £30,000
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- Tiffany bought a piece of equivalent for $40,000. The equipment has a useful life of 5 years and a salvage value of $500 at the end of its useful life. Assume that the interest rate per year is 10%. (a) Calculate the depreciation for year 4, using DDB. O $3456 O $3640 O $3820 O $4070JK Builders Co purchases a new excavator costing £40,000. Its expected useful life is ten years, at which point it is anticipated that the excavator will have a residual value of £6,000. If the straight-line method of depreciation is used, what is the carrying amount of the excavator at the end of four years? O A. £29,800 B. £26,400 O C. £13,600 O D. £24,000KM Builders Co purchases a new excavator costing £50,000. Its expected useful life is ten years, at which point it is anticipated that the excavator will have a residual value of £18,000. If the straight-line method of depreciation is used, what is the carrying amount of the excavator at the end of 4 years? O A. £32,000 O B. £48,000 OC. £50,000 OD. £37,200
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