Boysone Ltd has constructed a piece of complex equipment to be used in its updated production facility.The construction took a year to complete and although the equipment was ready for use,the rest of the facility was not completed and so the equipment was not put into use for another 6 months; that is,on 1 July 2003.The cost of constructing the equipment was $70,000 and it is expected to have an operating life of 12 years.It is very likely to be technologically obsolete in 10 years.It is expected to have a scrap value at the end of its life (at whatever time)of $5,000.The expected pattern of benefits derived from the equipment is uniform throughout its life.What is the amount of depreciation to be charged in the year ending 31 December 2003 (rounded to the nearest dollar)?

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The Answer of Boysone Ltd has constructed a piece of complex equipment to be used in its updated production facility.The construction took a year to complete and although the equipment was ready for use,the rest of the facility was not completed and so the equipment was not put into use for another 6 months; that is,on 1 July 2003.The cost of constructing the equipment was $70,000 and it is expected to have an operating life of 12 years.It is very likely to be technologically obsolete in 10 years.It is expected to have a scrap value at the end of its life (at whatever time)of $5,000.The expected pattern of benefits derived from the equipment is uniform throughout its life.What is the amount of depreciation to be charged in the year ending 31 December 2003 (rounded to the nearest dollar)?

Boysone Ltd Has Constructed a Piece of Complex Equipment to Be