Question
The following is an extract of balances for a company for the year: Heat and light paid during the year Rent paid during the year
The following is an extract of balances for a company for the year: Heat and light paid during the year Rent paid during the year Non-current assets (at cost) Sales for the year 22,000 27,000 80,000 850,000 The gross profit margin for the year has been calculated as 10%. Accumulated depreciation on the non-current assets at the start of the year was 20,000. Depreciation is to be calculated at 25% on the reducing balance method. At the end of the year adjustments also need to be made for heat and light accrued of 4,000, and rent prepaid of 2,500. Calculate the depreciation expense for the year; the net book value of the non-current assets at the end of the year; and the net profit for the year.
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