Octopus bought a car on 1 January 20X0 for $20,000 and decided. To depreciate it at 30% per annum on a reducing balance basis. It was disposed of during the year ended 31 December 20X2 for $12,000. Octopus does not charge depreciation in the year of disposal.

What is the net effect on the statement of profit or loss for the year ended 31 December 20X2?

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To calculate the net effect on the statement of profit or loss for the year ended 31 December 20X2 w... View the full answer