Question

Bird and Egg ventures decides to dispose off one of its motor vehicle which had originally costN900,000. The asset was sold after 6 years for N140,000. The partners had estimated a useful life of 8 years for the assets and depreciation is on straight line. 3. What is the total (accumulated) depreciation at the end of the sixth(6th) year?

Answer 1

Answer:

Explanation:

This is only a mathematical calculations:

Total cost =9,00,000.00

Estimated life = 8 years

Method of charging depreciation = straight line Method

Every year Depreciation will be =1,12,500.00

Total Depreciation at the end of 1st year   =1,12,500.00

Total Depreciation at the end of 2nd year =2,25,000.00

Total Depreciation at the end of 3rd year =3,37,500.00

Total Depreciation at the end of 4th year =4,50,000.00

Total Depreciation at the end of 5th year =5,62,500.00

Total Depreciation at the end of 6th year =6,75,000.00

Other points

1. savage value is not given

2. loss after sale of Vehicle has not been asked for to  determine