Hi,
It's question 46 PartD in F3 Question Bank Book.
Please can someone explain why dep is calculated 200000-40000=160000x20%. It is asked to calculate Dep 20% per year with proportional for item purchased or sold during a year.
i would calculate Dep as following 200000x20%=40000
as the plant was used for 9 months depn= 30000.
Dep on diposal amount 40000x20%, was used 9m=6000
Dep on Cash additions =5000
my answer 30000-6000+5000=29000??
Please advice, Thanks