At 31 July 20X6, Apollon 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. Apollon International depreciates non-current assets at a rate of 25% per annum. Required: Compute the company's depreciation charge for the year to 31 July 20X7 using: a. The straight line method (10 marks) b. The reducing balance method (15 marks) Assume that depreciation is charged from the first year of acquisition.
Straight line method Annual depreciation = book value of the asset* depreciation rate Depreciation of the non current assets... View the full answer