Reference no: EM132772325

Lucy Flynn had a number of Non-Current Assets as at 1 January 2X16, details of which are as follows:

Type: Equipment

Cost: €2,800,000

Date of Acquisition: 1 March 2X17

Depreciation Method: 30% Straight Line

During the year ended 31 December 2X18, S. O'Brien disposed if the following:

(i) Equipment which originally cost €400,000 (when acquired on 1 March 2X17) was disposed of on the 30 June 2X19 for €200,000.

Note: it is Lucy Flynn policy to charge depreciation on a monthly basis however no depreciation should be charged in the year of disposal.

You are required to show:

Problem a ) The Non- Current Asset Cost A/c, Provision for Depreciation A/c, Depreciation Expenses A/c and where relevant the Disposal A/c for the above Non-Current Asset item for the year 31 December 2X19.

Problem b) The relevant Statement of Comprehensive Income and Statement of Financial Position extracts for Lucy Flynn as at that date.