At 31 December 2019, TC Limited has plant and equipment with a carrying amount of £225,000. Depreciation charged in the year to 31 December 2019 was £75,000 and the depreciation policy of the company is to depreciate plant and equipment at the rate of 20% straight line. The directors estimated that the plant and equipment would have a residual value of £50,000 at the date the assets were acquired. What is the original cost of the plant and equipment?

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The Answer of At 31 December 2019, TC Limited has plant and equipment with a carrying amount of £225,000. Depreciation charged in the year to 31 December 2019 was £75,000 and the depreciation policy of the company is to depreciate plant and equipment at the rate of 20% straight line. The directors estimated that the plant and equipment would have a residual value of £50,000 at the date the assets were acquired. What is the original cost of the plant and equipment?

At 31 December 2019, TC Limited Has Plant and Equipment