Machinery acquired for £800,000 was reported at £494,000 on the Statement of financial position as at 30 June 2010. A machine was acquired for £120,000 on 1 April 2011 and another, acquired for £40,000 on 1 July 2008, was sold for £22,000 on 31 March 2011. The depreciation is written off at 40% per annum using the reducing balance method with time apportionment. Calculate the depreciation written off in the year ended 30 June 2011 and the gain or loss on disposal of machinery.

Transcribed Image Text:

Depreciation a £197,920 b £213,920 c £208,160 с d £212,160 Gain/loss £11,920 gain £13,360 gain £11,920 gain £13,360 gain