Section A: Q23

Specimen exam

Q23 Section A

2 marks

The plant and machinery account (at cost) of a business for the year ended 31 December 20X5 was as follows:

Plant and machinery (at cost)

20X5 20X5
$ $
1 Jan Balance 240,000 31 Mar Transfer disposal account 60,000
30 Jun Cash purchase of plant 160,000 31 Dec Balance 340,000
400,000 400,000

The company's policy is to charge depreciation at 20% per year on the straight-line basis, with proportionate depreciation in the years of purchase and disposal.

What should be the depreciation charge for the year ended 31 December 20X5?

Pick 1 option