Compute the company depreciation charge for the year

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Problem - At 31 July 20X6, Apollon International had non-current assets which had cost $310,000. At the same date, the accumulated depreciation on the assets was $120,000. The company had not disposed of any non-current assets during the year to 31 July 20X7, but acquired an asset at a cost of $79,200 on 1 January 20X7. Apollon International depreciates non-current assets at a rate of 25% per annum.

Required - Compute the company's depreciation charge for the year to 31 July 20X7 using:

a. The straight line method

b. The reducing balance method

Assume that depreciation is charged from the first year of acquisition.

Reference no: EM132468087

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