Ross Ltd Bought a Machine for £120,000

question 9

Multiple Choice

Ross Ltd bought a machine for £120,000. It has an expected useful life of 5 years and a residual value of £10,000. Using straight-line depreciation, how much will the depreciation charge be for each year?

• A) £110,000
• B) £24,000
• C) £26,000
• D) £22,000

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Drug Testing

The process of analyzing biological samples (such as blood, urine, or hair) to detect the presence of drugs or their metabolites.

Cause

The reason something happens, often used in legal contexts to determine the cause of an event or action leading to liability.

Employees

Employees are individuals who are hired by an employer to perform specific duties in exchange for compensation, typically in the form of wages or salary.