Black and Blue Ltd depreciates its forklift trucks using a reducing balance rate of 30 per cent.

Question:

Black and Blue Ltd depreciates its forklift trucks using a reducing balance rate of 30 per cent. Its accounting year end is 30 September. On 30 September 2006, it owned four forklift trucks:

(A) Purchased on 1 January 2003 for £2,400

(B) Purchased on 1 May 2004 for £2,500

(D) Purchased on 1 April 2006 for £3,600 Required:

Calculate the depreciation provision for the year ending 30 September 2006.

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