A freight hauler acquired a truck for £90,000 on 1 January 2010 and another for £70,000 on 30 June 2011. He estimates the economic life of each truck at four years and scrap value as 10% of cost. Calculate the depreciation charge for the year ended 31 December 2012, if the depreciation method used is:

(a) The straight-line method

(b) The reducing balance method at 40% per annum of reducing balance

(c) The sum of the years’ digits method

Transcribed Image Text:

X Y £28,125 £36,000 £44,900 £29,760 £38,250 £35,100 Z £40,000 £31,824 £30,150