Reference no: EM132627448

Question 1: How many of these factors will have an effect on the amount of depreciation charged on an asset in a particular accounting period?

1. Cost or revalued amount of asset
2. The size of the asset
3. Method of depreciation used
4. Estimated residual value of asset

Select one:

a. 1

b. 2

c. 4

d. 3

Question 1: A retailer purchased a delivery wagon for $21 000 on 1 July 2014. It was planned to keep the vehicle until it had done 60 000 kilometres and then to trade it in. The expected trade in value was $6000.

Schedule of actual distance travelled was:

30/6/15 20 000 km
30/6/16 15 000 km
30/6/17 15 000 km
30/6/18 10 000 km

Using the units-of-production method the amount of depreciation charged for the year ended 30 June 2018 was:

Select one:

a. $2500.

b. $3750.

c. $5000.

d. $3500.