Accounting 0452 · IGCSE · Accounting for depreciation and disposal of non-current assets

Accounting for depreciation and disposal of non-current assets — practice question

At the start of year 1, two companies each bought a motor vehicle for $10000. Company G applied the straight-line method of depreciation at 15% per annum, whereas Company H applied the reducing balance method at 20% per annum. What was the difference between the depreciation charge for year 2 for the two companies?

  • A$100 greater for G
  • B$100 greater for H
  • C$500 greater for G
  • D$500 greater for H

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