5.16 Valda runs a marketing agency. She prepares her own accounts and is currently working on the statement of profit or loss and statement of financial position at 31 December 20X7. She purchased the freehold of a small office building on 1 January 20X1 for £364,000. The land value included in the purchase price is estimated at

£50,000. Valda depreciates the buildings element of the freehold over 100 years, the expected useful life of the building.

Apart from the building, Valda’s business owns fixtures and fittings which were purchased several years ago for £16,777. The fixtures and fittings are now fully depreciated. Also, the business owns two cars which are used for staff visiting clients. One car was bought on 1 January 20X4 for £15,300 and the other on 1 January 20X5 for £17,660. Valda depreciates the cars on a straight-line basis over their estimated useful lives of four years. Both cars have an estimated residual value of £5,000.

i) Calculate the total depreciation charge to Valda’s statement of profit or loss in respect of depreciation for the year ended 31 December 20X7.

ii) Show how non-current assets will be presented in Valda’s statement of financial position at 31 December 20X7.