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Eatary, a catering company, is owned by Ms Awovuyo and has a financial year end of 28 February 2022. Catering equipment was purchased by the
Eatary, a catering company, is owned by Ms Awovuyo and has a financial year end of 28 February 2022. Catering equipment was purchased by the business on 01 September 2021 for an amount of R100 000. Depreciation for catering equipment is provided for on the straight line method at a rate of 20% per annum. The opening balance of accumulated depreciation was R300 000. The opening balance of catering equipment is R700 000 Which one of the following amounts represents the correct amount that must be disclosed as depreciation expense in the statement of profit or loss and other comprehensive income of Eatery for the year ended 28 February 2022? A. R150 000 B. R140 100
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