smart2.ums.edu.my ING SYSTEM lti Perniagaan, Ekonomi dan Perakaunan BT12203 [2-2
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smart2.ums.edu.my ING SYSTEM lti Perniagaan, Ekonomi dan Perakaunan BT12203 [2-2017/2018] 3 BT12203 Question 2 Not yet answered Marked out of 1.00 21.05. Lee Enterprises purchased a depreciable asset for RM22,000 on 1 March, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's residual value is RM2,000, what will be Flag question the amount of accumulated depreciation on this asset on 31 December, Year 4? Select one: O a. RM19,166.67 b. RM4,166.67 Oc. RM16,666.68 d. RM5,000.00 e. RM20,000.00 NextExplanation / Answer
Solution:
Cost of depreciable asset = RM 22,000
Residual value = RM 2,000
Life of assets = 4 years
Annual depreciation using SLM = (Original Cost - Salvage Value) / Life of Asset
= (RM 22,000 - RM2000) / 4 = RM 5000
As asset used for 10 months in year 1, therefore depreciation for year 1 = RM 5000*10/12 = RM 4,166.67
Depreciation for next 3 years = RM 5000*3 = RM 15,000
Accumulated depreciation on asset on 31 december, year 4 = RM 4,166.67 + RM 15,000 = RM 19,166.67
Hence option a is correct.
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