Question
Equipment was purchased by VW Traders on 1 March 2013 for N$25 800 cash. The expected economic life of the equipment is 5 years and
Equipment was purchased by VW Traders on 1 March 2013 for N$25 800 cash. The expected economic life of the equipment is 5 years and the expected residual value at the end of 5 years is N$800. The financial year of the business ends on the last day of February each year. Calculate the depreciation per annum using the straight line method and complete the table with the necessary values. End of financial year Cost Price Annual Depreciation (N$) Accumulated Depreciation (N$) Carrying Value (N$) 28 Feb 2014 N$25 800 28 Feb 2015 N$25 800 28 Feb 2016 N$25 800 28 Feb 2017 N$25 800 28 Feb 2018 N$25 800
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