Ellie Limited has just set up in business. The directors have acquired the following non-current assets. The cost, estimated residual value and the depreciation rates to be applied to each class of assets are shown in the table below. What is the total depreciation charge that Ellie Limited will recognise in its statement of profit or loss for its first year of operations?
$ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \text { Cost }$ $ \quad $ $ \quad $ $ \text { Residual value Depreciation Basis }$
$\begin{array}{llll}
& £ & £ & \
\text { Motor vehicles } & 120,000 & 30,000 & 25 \% \text { straight line } \
\text { Equipment } & 200,000 & 60,000 & 30 \% \text { reducing balance }
\end{array}$

Question

Ellie Limited has just set up in business. The directors have acquired the following non-current assets. The cost, estimated residual value and the depreciation rates to be applied to each class of assets are shown in the table below. What is the total depreciation charge that Ellie Limited will recognise in its statement of profit or loss for its first year of operations?
 $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $ $  \text { Cost }$ $ \quad $ $ \quad $  $ \text { Residual value Depreciation Basis }$ 
$\begin{array}{llll} 
& £ & £ & \
\text { Motor vehicles } & 120,000 & 30,000 & 25 \% \text { straight line } \
\text { Equipment } & 200,000 & 60,000 & 30 \% \text { reducing balance }
\end{array}$

Quizplus · Accepted Answer

The Answer of Ellie Limited has just set up in business. The directors have acquired the following non-current assets. The cost, estimated residual value and the depreciation rates to be applied to each class of assets are shown in the table below. What is the total depreciation charge that Ellie Limited will recognise in its statement of profit or loss for its first year of operations?
 $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $ $  \text { Cost }$ $ \quad $ $ \quad $  $ \text { Residual value Depreciation Basis }$ 
$\begin{array}{llll} 
& £ & £ & \
\text { Motor vehicles } & 120,000 & 30,000 & 25 \% \text { straight line } \
\text { Equipment } & 200,000 & 60,000 & 30 \% \text { reducing balance }
\end{array}$

Ellie Limited Has Just Set Up in Business \quad

Ellie Limited Has Just Set Up in Business $\quad$