Use the following information to answer the questions below: 01.01.21 31.12.21 31.12.21 RC=MV Replacement Cost (RC) *Market
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Question:
01.01.21 | 31.12.21 | 31.12.21 | |
---|---|---|---|
RC=MV | Replacement Cost (RC) | *Market Value (MV) | |
Equipment | 275318 | 365572 | 200,000 |
Accumulated Depreciation on Equipment | (150,000) | ? | ? |
*MV is also known as Selling price.
The Consumer Price Index was 100 at the start of the year and 110 at the end of the year.
Equipment is depreciated at 10% per annum with no residual value. At the start of the year, it had been depreciated by 5 years.
Required:
Using current cost accounting, calculate:
i) Depreciation expense on equipment for 2021.
ii) Backlog depreciation on equipment for 2021.
Posted Date: