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how do you calculate the depreciation expense for 2020? Purchase depreciat ion Land 1 January 20.19 750 000 750 000 Factory plant 1 January 20.19

how do you calculate the depreciation expense for 2020?

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Purchase depreciat ion Land 1 January 20.19 750 000 750 000 Factory plant 1 January 20.19 1 000 000 100 000 900 000 Vehicles 1 January 20.19 650 000 130 000 520 000 Factory plant Factory plant of Botchabelo Lid is depreciated at 10% per annum on the straight-line method and it is expected that the plant will generate constant production until the end of its useful life with no residual value. One of the components of a production line within the factory plant was replaced on 1 July 20.20 at an amount of R415 550 (excluding VAT). The component was available for, and put into, use on the same day, after the old component was derecognised. The original cost of the component that was replaced is estimated at R402 500 (including VAT) and was not identified as a separate component at initial recognition. The useful life and residual value of the entire factory plant have not changed since initial recognition

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