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. Margaret's Magnificent Milling Limited buys a new milling machine for £250,000. The directors expect the machine to have a useful life within the company of 10 years and to have a value of £nil at the end of those 10 years. An equal amount of depreciation on the new milling machine is to be provided in each of the 10 years of useful life. What is the accumulated depreciation and the carrying amount of the new milling machine after it has been in operation for four years?

£50,000 accumulated depreciation, £200,000 carrying amount correct incorrect

£75,000 accumulated depreciation, £175,000 carrying amount correct incorrect

£100,000 accumulated depreciation, £150,000 carrying amount correct incorrect

£125,000 accumulated depreciation, £125,000 carrying amount correct incorrect

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. Dawn's Delicious Desserts Limited buys a new factory building for £1,000,000. The directors expect the factory to last for 25 years and to have a value of £nil at the end of those 25 years. An equal amount of depreciation on the new factory is to be provided in each of the 25 years of useful life. What is the accumulated depreciation and the carrying amount of the new factory after the factory has been in operation for sixteen years?

£160,000 accumulated depreciation, £840,000 carrying amount correct incorrect

£360,000 accumulated depreciation, £640,000 carrying amount correct incorrect

£480,000 accumulated depreciation, £520,000 carrying amount correct incorrect

£640,000 accumulated depreciation, £360,000 carrying amount correct incorrect

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. David's Delivery Services Limited buys a new delivery van for £25,000. The directors expect the delivery van to complete 125,000 miles after which its value to the company will be £nil and the van will be replaced. The directors depreciate delivery vans on the basis of the number of miles travelled rather than on the number of years that the vans are expected to last. At the end of the second year of its useful life, the van has travelled 55,000 miles. What is the accumulated depreciation and the carrying amount of the new van at the end of its second year of operations?

£10,000 accumulated depreciation, £15,000 carrying amount correct incorrect

£11,000 accumulated depreciation, £14,000 carrying amount correct incorrect

£12,000 accumulated depreciation, £13,000 carrying amount correct incorrect

£12,500 accumulated depreciation, £12,500 carrying amount correct incorrect

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