Wombat Limited applies the straight-line method of depreciation to its non-current assets. The cost of the buildings was $400 000, the depreciable amount is $350 000, the residual value is $50 000 and the useful life is 10 years. The annual depreciation charge is:

Question

Quizplus · Accepted Answer

Annual depreciation charge = (cost - residual value) / useful life
= ($400,000 - $50,000 ) / 10
= $35,000

Wombat Limited Applies the Straight-Line Method of Depreciation to Its