Mike Ran a Chauffeur Driven Limousine Business and Had Fixed

question 2

Multiple Choice

Mike ran a chauffeur driven limousine business and had fixed assets consisting of four cars all bought at the same time with a carrying value of £88000. He reckons these will last three years and then be scrapped. The accumulated depreciation at the start of the year was £44000. Six months into the year one of his drivers wrote off a car and the insurance company paid out £20000 to settle the claim. He replaced the car immediately with a better model costing £39000. His policy as regards depreciation is to use straight line depreciation. What is the charge for the year?

• A) £44000
• B) £46000
• C) £45000
• D) None of the above

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Definitions:

Financial Projections

Estimates of a company's future financial performance, including income, expenses, and cash flow, based on current data and trend analysis.

Appendices

Additional sections of a document that provide supplementary information.

Marketing Plan

An extensive plan or framework detailing a corporation's promotional and marketing strategies for the upcoming year.

Black And White

A term often used to describe a situation or view that is clear-cut, with no gray area or ambiguity.