A-LevelAccountingAccounting for non-current assets9706/12 · Oct/Nov 2018 · Q41 Mark
The following is an extract from the statement of financial position for a company at 31 December 2016. non-current assets cost $250 000, accumulated depreciation $95 000, net book value $155 000. The assets have a residual scrap value of $12500. The company's policy is to provide depreciation using the reducing balance method at a rate of 25% per annum. What was the depreciation charge for the year ended 31 December 2017?
A$35625
B$38 750
C$59375
D$62500
✓ Correct answer
B: $38 750
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