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part b i) please help The following information is available regarding the non-current assets of Eka Pte Limited. Land and buildings $000 Motor vehicles $000
part b i) please help
The following information is available regarding the non-current assets of Eka Pte Limited. Land and buildings $000 Motor vehicles $000 Plant and machinery $000 Cost at 31 March 2016 500 300 400 Depreciation charge for the year ended 31 March 2016 40 60 Net book value at 31 March 2016 500 120 250 The following information is also available: 1 The company charges depreciation using the following methods: Land and buildings no depreciation charged Motor vehicles annually using the reducing-balance method annually using the straight-line method Plant and machinery 2 The cost of the land was $400 000. REQUIRED (a) () Name one accounting concept applied when charging depreciation on non-current assets. [1] (ii) Explain why depreciation may be charged on non-current assets. (b) Calculate the annual rate of depreciation the company charges on: (i) Motor vehicles [2]Step by Step Solution
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