A. Gill purchased a notebook PC for 1,200. It has an estimated life of four years and

Question:

A. Gill purchased a notebook PC for £1,200. It has an estimated life of four years and a scrap value of £100. She is not certain whether she should use the straight line or the reducing balance basis for the purpose of calculating depreciation on the computer. You are required to calculate the depreciation (to the nearest £) using both methods, showing clearly the balance remaining in the computer account at the end of each of the four years under each method. (Assume that 45 per cent per annum is to be used for the reducing balance method.)

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Frank Woods Business Accounting

ISBN: 9780273759287

12th Edition

Authors: Frank Wood. Sangster, Alan

Question Posted: