James Mbuvi started a taxi business in Nairobi March 1990. The firm had two vehicles KA...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
James Mbuvi started a taxi business in Nairobi March 1990. The firm had two vehicles KA and KB, which had been purchased forSh.560, 000, and Sh.720, 000 respectively earlier in the year. In February 1992 vehicle KB was involved in an accident and was written off. The insurance company paid the firm Sh.160, 000 for the vehicle. In the same year the firm purchased two vehicles, KC and KD for Sh.800, 000 each. In November 1993 vehicle KC was sold for Sh.716, 000. In January 1994 vehicle KE was purchased for Shs.840,000. In March 1994 another vehicle KF was purchased for Sh.960, 000. The firm's policy is to depreciate vehicles at the rate of 25 per cent on cost on vehicles on hand at the end of the year irrespective of the date of purchase. Depreciation is not provided for vehicle disposed of during the year. The firm's year ends on 31 December. Calculate the amount of depreciation charged in the profit and loss account for each of the five years. James Mbuvi started a taxi business in Nairobi March 1990. The firm had two vehicles KA and KB, which had been purchased forSh.560, 000, and Sh.720, 000 respectively earlier in the year. In February 1992 vehicle KB was involved in an accident and was written off. The insurance company paid the firm Sh.160, 000 for the vehicle. In the same year the firm purchased two vehicles, KC and KD for Sh.800, 000 each. In November 1993 vehicle KC was sold for Sh.716, 000. In January 1994 vehicle KE was purchased for Shs.840,000. In March 1994 another vehicle KF was purchased for Sh.960, 000. The firm's policy is to depreciate vehicles at the rate of 25 per cent on cost on vehicles on hand at the end of the year irrespective of the date of purchase. Depreciation is not provided for vehicle disposed of during the year. The firm's year ends on 31 December. Calculate the amount of depreciation charged in the profit and loss account for each of the five years.
Expert Answer:
Answer rating: 100% (QA)
To calculate the amount of depreciation charged in the profit and loss account for each of the five ... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
The following excerpt is from Coca-Cola Company's 2011 annual report filed with the SEC. Management evaluates the performance of our operating segments separately to individually monitor the...
-
Calculate e y for the following values of y: (a) y = 1 (b) y = 5 (c) y = -.5 (d) y = -2.5 (e) y = 3.1 (f) y = - I (g) y = .05 (h) y = .32 (i) y = 6.1 (j) y = -5.4
-
Roads going up mountains are formed into switchbacks, with the road weaving back and forth along the face of the slope such that there is only a gentle rise on any portion of the roadway. Does this...
-
Consider the insurance database of Figure, where the primary keys are underlined. Construct the following QBE queries for this relational-database. a. Find the total number of people who owned cars...
-
Baxter International Inc. (USA) established the following environmental goals in 1997 for 2005: global targets to cut packaging, energy consumption, toxic emissions to the air and the generation of...
-
On October 1, 2012, Holmgren Chemical was identified as a potentially responsible party by the Environmental Protection Agency. Holmgrens management along with its counsel have concluded that it is...
-
Critically examine how Clayton Christensen s notion of disruptive technology extends our understanding on why new entrants might have an advantage over an industry\'s incumbent firms in developing...
-
a. Tables 1 through 5 contain the financial information describing the effects of level production on inventory, cash flow, loan balances, and interest expense. Reproduce these tables as if Tim's...
-
Sexual harassment at the workplace has been in the news quite often lately and is a recurring problem. To explore the issue a little closer, please answer the following questions: 1) Find an example...
-
If there are any questions that you have about computer safety, please call us. Your Task. Revise the above sentence to avoid unnecessary there is/are and it is/was fillers.
-
Our board promised to give consideration to the proposed acquisition at its next meeting. Your Task. Revise the above to recover buried verbs and convert zombie nouns.
-
Revise the following paragraph about three Twitter best practices by using a bulleted list. There are three simple ways you can build an online following, drive your reputation, and develop customers...
-
There are hackers who distribute malware that blocks access to a targets systems and then demand ransom payment to release the digital hostages. Your Task. Revise the above sentence to avoid...
-
Please circle back to me about the proposal and we will be good to go. Your Task. Revise the above sentence to avoid confusing jargon, slang, clichs, and wordiness.
-
The Shipwreck Caf is located in a small tourist community near the seaside of Southend-On-Sea, UK. It has been in business for just two years and has developed a solid local customer based made up...
-
Use nodal analysis to determine voltages v1, v2, and v3 in the circuit Fig. 3.76. Figure 3.76 4 S 3i, 2 A 4A
-
What are the three important objectives for a companys customer management processes within the Balanced Scorecards process perspective?
-
The following data have just been gathered on last year's quality-related costs at the Ideal Company: Total sales last year were $75,000,000.Required(a) Prepare a cost-of-quality report grouping...
-
Steelmax, Inc., sells office furniture in the Chicago metropolitan area. To better serve its business customers, Steelmax recently introduced a new same-day service. Any order placed before 2:00 P.M....
-
Again, consider the three-dimensional monthly \(\log\) returns of Problem 1. Fit a DCC model of Tse and Tsui (2002) with Student- \(t\) innovations to the data and obtain the time-varying...
-
The file m-pgspabt-6211.txt contains the monthly simple returns of Procter & Gamble stock, S&P composite index, and Abbot Laboratories stock from January 1962, to December 2011. Compute the log...
-
Again, consider the three-dimensional log returns of Problem 1. Fit a \(t\)-copula model with marginal Student \(-t\) innovations to the data. White down the fitted model and compute the resulting...
Study smarter with the SolutionInn App