Delta Ltd purchased a motor vehicle for $45 000 on 1 January 2016.The vehicle was expected to have a life of three years and an estimated disposal value of $15 000.The straight-line method of depreciation is employed and the financial year ends on 30 June.
-What was the depreciation expense for year ended 30 June 2016?

Question

Quizplus · Accepted Answer

Depreciation expense for the year ended 30 June 2016 = (Cost - Estimated disposal value) / Useful life= (45,000 - 15,000) / 3= $10,000

Delta Ltd Purchased a Motor Vehicle for $45 000 on 1