Wednesday, February 4, 2015

Depreciation and What causes depreciation Q7

Q.
a) A used motor car costs RM10,600. I was kept for three (3) years, and then sold for RM2,800. Calculate the depreciation for each year using:-

i) The Straight Line Method
ii) The Reducing Balance Method of 35% of depreciation rate. (12 marks)

b) Discuss four (4) causes of depreciation of fixed assets. (8 marks)

(20 marks, 2013 Q7)

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