A vehicle bought on 1 January 2013 cost 16,000. Its useful economic life is estimated at four

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A vehicle bought on 1 January 2013 cost £16,000. Its useful economic life is estimated at four years and its trade-in value at that point is estimated as being £4,000. During 2015 a review of the vehicle’s probable useful economic life suggested that it should be retained until 1 January 2018 and its residual value should be £2,500. Required: What is the amount of straight line depreciation charged in the income statement in the year ending 31 December 2015 and the amount included in the statement of financial position for accumulated depreciation at that date?

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Frank Woods Business Accounting

ISBN: 9780273759287

12th Edition

Authors: Frank Wood. Sangster, Alan

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