At 31 July 20X6, Helios International had non-current assets which had cost $310,000. At the same date, the accumulated depreciation on the assets was $120,000. The company had not disposed of any non-current assets during the year to 31 July 20X7, but acquired an asset at a cost of $79,200 on 1 January 20X7. Helios International depreciates non-current assets at a rate of 25% per annum. What is the company’s depreciation charge for the year to 31 July 20X7 using:

a. The straight line method

b. The reducing balance method Assume that depreciation is charged from the first year of acquisition.

Answer rating: 100% (QA)

Helios International Straight Line Method Amount Note Original cost as of 31 July 20X7 ... View the full answer