An item of plant was acquired for $220,000 on 1 January 20X6. The estimated useful life...

 

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An item of plant was acquired for $220,000 on 1 January 20X6. The estimated useful life of the plant was five years and the estimated residual value was $20,000. The asset is depreciated on a straight-line basis. On 31 December 20X6 the remaining useful life of the plant was estimated to be three years, with an estimated residual value of $12,000. Required Explain how depreciation would be calculated for the plant for each year of its useful life. An item of plant was acquired for $220,000 on 1 January 20X6. The estimated useful life of the plant was five years and the estimated residual value was $20,000. The asset is depreciated on a straight-line basis. On 31 December 20X6 the remaining useful life of the plant was estimated to be three years, with an estimated residual value of $12,000. Required Explain how depreciation would be calculated for the plant for each year of its useful life.

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Acquired at 220000 Residual value 20000m Esti... View the full answer