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Douggen manufactures and installs specialist industrial pumps. The business commenced trading on 1 January 2012 and purchased the following assets: Plant and machinery 80,000

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Douggen manufactures and installs specialist industrial pumps. The business commenced trading on 1 January 2012 and purchased the following assets: Plant and machinery 80,000 Motor vehicles 24,000 Before preparing the financial statements Douggen needs to decide how the business is going to depreciate various assets. 3/9 Q4. Which policy should Douggen choose if the business wants to maximise its profits for those two years?

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