DEPRECIATION

The following are the examples of tangible non currents assets except

• Factory machines

• Trolleys in supermarkets

• Office equipments

• Customer goodwill

The following are the factors affecting depreciation...

• Scrap value

• EUEL

• True cost

• All the above

The following are the methods to calculate depreciation except

• NRV

• SLM

• RBM

• SODM

The market value of the NCA at the end of EUEL.

• True cost

• scrap Value

• SLM

• RBM

The following should be added in the calculation of true cost of NCA except

• Shipping charges

• Installation charges

• Admin expenses

• sales tax

True cost RM 200,000, EUEL = 10 years, Scrap Value = 5% of TC. Method SLM. Compute NBV after 6 years?

• RM 86,000

• RM 19,000

• RM 190,000

• RM 10,000

True cost RM 350,000, EUEL = 5 years, Scrap Value = 10% of TC. Method SODM. Compute depreciation in the 3rd year?

• RM105,000

• RM 35,000

• RM 42,000

• RM 63,000

True cost RM 8m, EUEL = 100 years, Scrap Value =2% of TC. Method SLM. Compute NBV after 80 years?

• RM 7,840,000

• RM 78,400

• RM 1,728,000

• Non Of the above

True cost RM 400,000, EUEL = 8 years, Scrap Value = 4% of TC. Method RBM @ 33% . Compute NBV after 2 years?

• RM 179,560

• RM 132,000

• RM 268,000

• RM 16,000

The following are the common causes of depreciation except..

• Wear and tear

• Passage of time

• Usage

• Amount of bad debts