Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions