Victor adopts the straight-line method of depreciation in his accounts. He purchases a new machine on 1 June 20X4 for £13 750. He expects to keep the machine for approximately six years, at the end of which time it will have a scrap value of about £250. Victor prepares accounts to 31 December each year.

What is the first year’s depreciation charge, assuming that Victor charges a full year’s depreciation in the year of acquisition of fixed assets and none in the year of disposal?

SECTION 2. FINANCIAL ACCOUNTING 9.14 Sal ayy E125 Dye £29250 GQ Aaa ee G) PREZ 333.