A company bought machinery for 80,000 and charged depreciation on reducing balance basis at the rate of 10% per annum. What is the total accumulated depreciation at the end of the second year? A) 8,000 B 15,200 16,000 7,200 Question 4 2 Points A company bought a property for 110,000 in 2010 and accumulated depreciation as at 30 June 2018 was 62,000. The company decides to revalue the asset to 300,000. What is the amount of revaluation reserve? 190,000 B 252,000 128,000 202,000 Question 5 2 Points A company bought equipment for 120,000 and charged depreciation on the straight line method. The useful life of the equipment is estimated at 10 years and the residual value at the end of the tenth year is 20,000. What is the net book value of the equipment at the end of the third year? A 100,000 B) 80,000 70,000 90,000 Question 6 2 Points A company bought machinery for 60,000 and charged depreciation at 10% on cost. What is the charged for depreciation in the second year? A) E5,600 B 12.000 6,000 D E11,200 Question 7 2 Points The annual depreciation expense is shown under which section in the cash flow statement Inflow in the Financing activities Add to the operating profit under operating activities Outflow in the investing activities O not shown in the cash flow statement Question 8 2 Points A company bought plant and machinery in August 2016 for 90,000, it closes accounts 30 September each year. The company decides to charged depreciation on cost at 10% p.a. What is the net book value of the machinery at the end of 30 September 2018? 81,000 B) 63,000 C 72.000 D) 90,000 Question 9 2 Points Depreciation expense is deducted from profit in income statement but not included in the Statement of financial position A) True B) False Question 10 2 Points An equipment that is not functioning or in working conditions will appear on the financial statements at cost B revalued amount cost less impairment cost O cost less accumulated depreciation