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XYZ Ltd operate two production lines. One was installed in April 2017 at a cost of 200,000. The other was installed in February 2019 at
XYZ Ltd operate two production lines. One was installed in April 2017 at a cost of 200,000. The other was installed in February 2019 at a cost of 340,000. They charge depreciation using the straight-line method at a rate of 15% pa for an estimated useful economic life of 5 years, charging a full year in the year of acquisition. As at the year ended 31 Dec 2020, the production manager has filed a report noting that the residual value of the production lines is now expected to be only 5% of original cost. The Directors want to reflect this change in the accounts for the year ending 31 Dec 2020. What should be the depreciation charge for the year
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