ACC 245 HANDS ON ASSIGNMENT ( Depreciation)

Fatema enterprises purchased a motor vehicle for AED 270,000 in 2010. At the time of purchase, it was expected to last for 10 years with a residual value of AED 20,000. At the end of 2020, the company discovered that the earlier depreciation was in error and gave a revised estimates as follows:

Expected useful life=15 years

Residual value=AED 10,000

Depreciation is done on a straight line basis.

Required

1. What is the entry to calculate previous years depreciation

2. Calculate depreciation estimates for year 2021