The information below was extracted from the books of Reinhold stores as at 31 December 2018.

Vehicles N$41,400

Equipment N$25,000

Provision for depreciation on Vehicles N$12,420

Provision for depreciation on equipment N$5,000

Adjustments

1. 1. Depreciation should be provided: vehicles using 15% fixed amount method and equipment using 20% reducing balance method.
2. (a) Calculate depreciation for vehicles and equipment for the year.
3. 
   
4. 2. Equipment with the value of N$5,000 in June 2020, has been revalued at N$4,800, in December 2020. Calculate the depreciation for the year.
5. 
   
6. 3. Explain how the prudence concepts is applied when charging depreciation on non-current assets.
7. 
   4. Explain two cause of depreciation on non-current assets.

Answer rating: 100% (QA)

1 Depreciation for vehicles N41400 15 N6210 Depreciation for equipment N25000 20 N5000 for the first ... View the full answer