Able Towing purchased a tow truck for 60,000 on January 1, 2023. It was originally depreciated on
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Able Towing purchased a tow truck for £60,000 on January 1, 2023. It was originally depreciated on a straight-line basis over 10 years with an assumed residual value of £12,000. On December 31, 2025, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including 2025) and the residual value to £2,000. What was the depreciation expense for 2025?
a. £6,000.
b. £4,800.
c. £15,000.
d. £12,100.
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SOLUTION Original depreciation was straight line over 10 yea...View the full answer
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Related Book For 
Financial Accounting With International Financial Reporting Standards
ISBN: 9781119787051
5th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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