Crows Ltd purchased a photocopier on 1 July 2012 for $30 000.It was estimated that it would have a useful life of 3 years and produce 5 000 000 copies over its life.The asset's residual value is estimated at $3000.Other similar assets are depreciated on a reducing balance method is at 40% rate.Which of the following statement is correct for year ending 30 June 2013?
A) If the straight-line method is used, depreciation expense is $10 000.
B) If the reducing balance method is used, depreciation expense is $10 800.
C) If the sum of digits method is used, depreciation expense is $13 500.
D) If the reducing balance method is used, depreciation expense is $10 800 and if the sum of digits method is used, depreciation expense is $13 500.
Correct Answer:
Verified
Q53: Which depreciation policy is likely to reduce
Q54: All Saints Ltd acquired a machine for
Q55: Pursuant to AASB 116,what is the carrying
Q56: Intangible assets are not depreciated under AASB
Q57: AASB 116 requires disclosure of a reconciliation
Q59: Kent Express owns a fleet of
Q60: The company recently acquired factory equipment.Which
Q61: Explain how different methods of cost apportionment
Q62: Explain why the combined cost of acquiring
Q63: Which of the following statements is applicable
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents