The following non-current assets are owned by Black for use in his business:

All assets were bought on1 January 20X0 and the depreciation policy of Black is as follows:

Buildings 1% straight line Equipment and vehicles 10% reducing balance Show the depreciation charges for the year ended 31 December 20X0 and 31 December 20X1 and comment on the depreciation policy of Black.

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Cost Estimated Estimated residual useful life value at end of useful life Years Building 400,000 40 250,000 Vehicle 110,000 6 6,000 Equipment 80,000 8 1,000