Maxim Sdn Bhd bought a lorry for business at cost of RM17,000. The lorry is expected...
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Maxim Sdn Bhd bought a lorry for business at cost of RM17,000. The lorry is expected to last for 5 years and then be sold for scrap for RM2,000. The annual depreciation charged to profit and loss account of Maxim Sdn Bhd is as following: Year 1 2 3 4 5 RM 5,950 3,868 2,514 1,634 1,034 (b) Our Explain the suitability of the depreciation method. [5 marks] Maxim Sdn Bhd bought a lorry for business at cost of RM17,000. The lorry is expected to last for 5 years and then be sold for scrap for RM2,000. The annual depreciation charged to profit and loss account of Maxim Sdn Bhd is as following: Year 1 2 3 4 5 RM 5,950 3,868 2,514 1,634 1,034 (b) Our Explain the suitability of the depreciation method. [5 marks]
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Answer rating: 100% (QA)
The depreciation method which is used is reducing balance method which is charged 35 p... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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