- 6 Marks
FA – L1 – Q18 – Non-current assets and depreciation
Calculate annual depreciation for Avery’s van using straight-line and reducing balance methods.
Question
Avery purchased a van for GH₵800 cash. He estimates that in four years it will have a scrap value of GH₵104.
Required
(a) Calculate the annual depreciation charge on the straight-line method.
(b) Calculate the annual depreciation charge on the reducing instalment method (you will need to calculate the rate).
Find Related Questions by Tags, levels, etc.
- Tags: Depreciation, Non-current Assets, Reducing Balance Method, Straight-line Method, Van
- Level: Level 1
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