* not completed

. The Krazy Knitwear Company buys a new knitting machine for £500,000. The directors estimate that the machine will have a residual value of 10% of its original cost and that it will have a five-year useful life. What is the annual depreciation charge on a straight-line basis?

£80,000 correct incorrect

£90,000 correct incorrect

£100,000 correct incorrect

£112,500 correct incorrect

* not completed

. Handy Andy's Handle Making Company buys a new handle turning machine for £250,000. The directors estimate that the new handle turning machine will have a residual value of £50,000 and produce 400,000 handles during its useful life. If the new handle making machine produces 75,000 handles in its first year of operations, what is the depreciation charge for this first year?

£37,500 correct incorrect

£40,000 correct incorrect

£50,000 correct incorrect

£75,000 correct incorrect

* not completed

. Alessandra Limited has purchased a new piece of machinery costing £324,000. The new piece of machinery is estimated to have a residual value of £42,000 and a useful life of 4 years. The directors have decided to depreciate this asset on a reducing balance basis at an annual rate of 40%. What is the depreciation charge for the first year of the new piece of machinery's life?

£70,500 correct incorrect

£81,000 correct incorrect

£112,800 correct incorrect

£129,600 correct incorrect

* not completed

. Mollie Limited buys an asset for £120,000. The directors estimate that the residual value after 5 years will be £20,000. The directors decide to use the reducing balance basis of depreciation for the asset. The % depreciation to be charged each year is 30.12%. What is the depreciation charge for the second year of the asset's life?

£58,599 correct incorrect

£36,144 correct incorrect

£25,257 correct incorrect

£21,048 correct incorrect

* not completed

. Joseph Limited buys a new computer system costing £200,000. The new computer system is estimated to have a scrap value of £20,000 and a useful life of 4 years. The directors have decided to depreciate this asset on the reducing balance basis at an annual rate of 43.77%. What is the carrying amount of the new computer system at the end of the third year of its useful life?

£15,564 correct incorrect

£27,678 correct incorrect

£35,558 correct incorrect

£63,236 correct incorrect

* not completed

. Federica Limited depreciates its machinery on the reducing balance basis at the rate of 30% per annum. A piece of machinery purchased 3 years ago at a cost of £350,000 and with an estimated residual value of £75,000 is to be sold for £130,000. What is the profit or loss on the disposal of this piece of machinery?

£39,325 loss correct incorrect

£39,325 profit correct incorrect

£9,950 loss correct incorrect

£9,950 profit correct incorrect

* not completed

. What is the depreciation charge for the fourth year of the asset's life?

£42,994 correct incorrect

£50,309 correct incorrect

£73,984 correct incorrect

£157,216 correct incorrect

* not completed

. What is the carrying amount of the piece of plant and machinery at the end of the first year of the asset's useful life?

£108,800 correct incorrect

£160,000 correct incorrect

£231,200 correct incorrect

£340,000 correct incorrect

* not completed

. If Renata sells the piece of plant and machinery at the end of year 4 and makes a profit on disposal of £8,093, what was the selling price of the piece of plant and machinery?

£80,790 correct incorrect

£98,814 correct incorrect

£115,000 correct incorrect

£165,309 correct incorrect

* not completed

. What is the total depreciation charge on non-current assets for the year to 31 December 2021?

£22,500 correct incorrect

£20,500 correct incorrect

£18,000 correct incorrect

£16,000 correct incorrect

* not completed

. What is the carrying amount of Maria's non-current assets at 31 December 2021?

£39,000 correct incorrect

£46,500 correct incorrect

£57,000 correct incorrect

£80,000 correct incorrect