If the reducing-balance method of depreciation is used, applying an annual depreciation rate of 15 per cent,

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If the reducing-balance method of depreciation is used, applying an annual depreciation rate of 15 per cent, what is the annual depreciation charge in Year 2?

(a) £3,400

(b) £4,335

(c) £5,100

(d) £6,000


The following information applies to question.

JK Builders Co purchases a new excavator costing £40,000. Its expected useful life is 10 years, at which point it is anticipated that the excavator will have a residual value of £6,000.

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Financial Accounting

ISBN: 9781292244471

8th Edition

Authors: Pauline Weetman

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