Accounting 9706 · AS & A Level · Accounting for non-current assets

Accounting for non-current assets — practice question

The extract below is taken from the statement of financial position of a company at 31 December 2016. Non-current assets: cost $250000, accumulated depreciation $95000, net book value $155000. These assets have a residual scrap value of $12500. The company’s policy is to calculate depreciation using the reducing balance method at a rate of $25\% per annum. Calculate the depreciation charge for the year ended 31 December 2017?

  • A$35625
  • B$38750
  • C$59375
  • D$62500

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