Fixed Assets and Depreciation

ABC Ltd

ABC Ltd also bought a delivery van on 1 November 2006, paying $55,000. The company plans to use the van for six years and then sell it for $8,000. The depreciation method for the vehicle is DV method at 25%.

On 1 March 2007, ABC Ltd purchased four office computers for a total of $18,000. The company expects to receive about $4,000 when they sell the machines after four years of use. The straight-line method is used to depreciate the computers.

Required: Show extracts from the financial statements at the year-end 31 December 2007

LOCKERS

On 1 April 2006 new lockers were purchased at a cost of $11,000, with installation costs of $1,000. Graffiti had to be removed in June 2006 at a cost of $3,000. Residual value at the end of 10 years will be $2,000.

Required:

Calculate the depreciation expense for the year ended 31 March 2007 if the company uses straight-line depreciation.