ACCA

Depreciation

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ACCA FA — Financial Accounting Practice Exam 3

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Q14Hard2 marks·ACCA FA — Financial Accounting Practice Exam 3

LogisticsPro purchased a delivery truck for $60,000 on 1 January 20X1. It was initially depreciated on a straight-line basis over 5 years with a $10,000 residual value. On 1 January 20X3, after 2 years of depreciation, the directors revise the remaining useful life to 2 years (total life 4 years) and revise the residual value to $5,000. What is the depreciation charge for the year ended 31 December 20X3?

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