Question
On 1 July 2010, TECH DEALERS purchased a vehicle with a cost price of R200 000. TECH DEALERS placed a residual value of R20 000
On 1 July 2010, TECH DEALERS purchased a vehicle with a cost price of R200 000. TECH DEALERS placed a residual value of R20 000 on the vehicle. Depreciation is calculated using the reducing balance method at a rate of 20% per year. The annual depreciation for the financial years ended 31 December 2010, 2011, 2012 and 2013 will be calculated as:
A. R18 000, R32 400, R25 920 and R20 736 respectively.
B. R36 000 per year.
C. R20 000, R36 000, R28 800 and R23 040 respectively.
D. R36 000, R28 800, R23 040 and R18 432 respectively.
E. R16 000, R28 800, R23 040 and R18 432 respectively.
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Commercial Printing IRS Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
1304133753, 978-1304133755
