Mr Pink

The following extracts are from notes to the Statement of Financial Position of Mr Pink as at 30

September 2019;

SFP AS AT 30 September 2018 [extract]

Non-current Assets

Cost Accumulated Carrying

Depreciation Value

Land & Buildings 900,000 (240,000) 660,000

Plant & Machinery 80,000 (0) 80,000

Motor Vehicles 110,000 (16,500) 93,500

The following information is relevant;

1. Included in the land and buildings is land which originally cost 250,000. Buildings are

depreciated using a straight line method over 50 years (2% per annum)

2. Plant & Machinery was purchased on 1 April 2017. It has an estimated useful life of 17 years,

a residual value of 14,000 and is to be depreciated using a straight line method

3. Motor Vehicles are depreciated at 15% using a reducing balance method

Required;

Calculate the depreciation charge for the year and the amounts to be transferred to the Statement

of profit or loss and Statement of Financial Position