What is the company depreciation charge for the year

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Reference no: EM132670275

Fixed Assets & Depreciation

Let us say at 31 July 20X6, Rays 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.

Rays International depreciates non-current assets at a rate of 25% per annum.

Problem 1: What is the company's depreciation charge for the year to 31 July 20X7 using:

a. The straight line method

b. The reducing balance method

Reference no: EM132670275

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