The company «Diamond» was established in January 1, 2014. Main activity of this company is trade of jewelry. «Diamond» provided information for the year of 2015. All the initial entries were made in 2015.

Additional information about all operations in 2015:

1. On March 16, 2014 the company bought 2 new computers for 50,000 KGS and new furniture for 75,000 KGS. The computers had an expected useful life of 5 years, and the furniture – 6 years. The salvage value of the furniture is 15,000 KGS, the salvage value of the office computers is 0. For the computers the company uses the double-declining method of depreciation, for the furniture – the straight-line method of depreciation. For tax reporting purposes the company needs to use the declining balance method (Tax Code of the KR, article 200).

2. The company uses the allowance method for accounting of bad debt. In 2015, the company set an Allowance for doubtful accounts in amount of 10,200 KGS. In December, 2015 one client of «Diamond» went bankrupt and was unable to pay his account in amount of 7,000 KGS.

3. In 2015, the company paid fines to the local budget in amount of 2,500 KGS.

4. In 2015 there were revealed expenses without documents in amount of 4,000 KGS.

5. Accounting profit for 2015 was 150,000 KGS.

6. Tax rate is 10%.

Task:

1. Calculate the depreciation using the accounting system for 2015 year.

Answer rating: 100% (QA)

Under Aceounting aylems depreciation deuble deelining methel li... View the full answer