Salim purchased machinery for $15,000 on 1 January 201. He decided to depreciate it using the straight
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Salim purchased machinery for $15,000 on 1 January 20–1. He decided to depreciate it using the straight line method at 10% per annum. On 31 December 20–2 he incorrectly charged depreciation using the reducing balance method at 10% per annum.
What was the effect on the profit for the year ended 31 December 20–2?
A. Overstated by $150
B. Understated by $150
C. Overstated by $1,350
D. Understated by $ 1,350
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Related Book For
Cambridge IGCSE And O Level Accounting Coursebook
ISBN: 9781316502778
2nd Edition
Authors: Catherine Coucom
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