A firm buys a delivery van for business use. The van costs 25,000 and is expected...
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A firm buys a delivery van for business use. The van costs £25,000 and is expected to last five years with an estimated scrap value of £500. Complete the following table comparing the depreciation and net book values for each year of the asset's life using the straight line and reducing balance methods of depreciation (take the rate of 50% for reducing balance). Cost Depreciation year 1 NBV end year 1 Depreciation year 2 NBV end year 2 Depreciation year 3 NBV end year 3 Depreciation year 4 NBV end year 4 Depreciation year 5 NBV end year 5 A firm buys a delivery van for business use. The van costs £25,000 and is expected to last five years with an estimated scrap value of £500. Complete the following table comparing the depreciation and net book values for each year of the asset's life using the straight line and reducing balance methods of depreciation (take the rate of 50% for reducing balance). Cost Depreciation year 1 NBV end year 1 Depreciation year 2 NBV end year 2 Depreciation year 3 NBV end year 3 Depreciation year 4 NBV end year 4 Depreciation year 5 NBV end year 5
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Answer rating: 100% (QA)
Year 1 Depreciation Straightline 25000 500 5 4900 NBV Straightline 25000 4900 20100 Depreciation Red... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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