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Jerry Co purchased machinery for 400,000 on 1/1/2017. It had an estimated useful life of ten years and it was depreciated using the reducing balance
Jerry Co purchased machinery for 400,000 on 1/1/2017. It had an estimated useful life of ten years and it was depreciated using the reducing balance method at a rate of 20%. On 1/1/19 it was decided to change the depreciation method to a straight line. There was no change to the useful life, and no residual value is anticipated. What was the accumulated depreciation and the net book value of the asset as at 31 December 2020? A. 208,000 and 192,000 B. 244,000 and 156,000 Oc.256,000 and 144,000 D.280,000 and 120,000 On 1 January 2018 Baron plc purchased a new machine at a cost of 106,720. Delivery costs were 5,660 and internal administration costs of 6,450 were incurred. At that time Baron plc planned to replace the machine in five years, when it would have no value, and to depreciate the machine on a straight-line basis. Baron plc decides on 1 January 2020 that the machine only has two remaining years of useful life. There is no change to the residual value at the end of its life. How much depreciation will be charged in respect of this machine in Baron plc's statement of profit or loss for the year ended 31 December 2020? A 33,714 B.f44.952 c. 67,428 D.35,252
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