ACCOUNTING FOR DEPRECIATION Practice Question Wakanda Plc purchased an equipment for #5,000,000 on January 1, 2002. The machine has a useful life of Syears and it has a scrap value of 500,000. 1. You are required to calculate the depreciation for the 5 years using a. straight line method b. Reducing Balance c. Sum of the year's digit 2. Assume the asset was bought on June 5, 2002 how will this affect the depreciation 3. Suppose the asset was sold before the life span expired (say on April 31, 2005) for #3,500,000. Calculate the Profit gained from the disposal of the asset and describe the accounting treatment for the profit