Question

The information relates to Carlos Pty Ltd business on 31 December 2015:

 On 1 January 2015, the following was extracted from the Carlos Pty Ltd’s trail balance:

Furniture Cost 160 000

 

Accumulated Depreciation

33 000

 

Additional information

• Carlos Pty Ltd bought a Motor Vehicle for R65 000 on the 1^st of June 2015. This vehicle was ready for use on the 30^th of September.
• The business uses the Reducing balance method (10%) and the Straight line method (15%) to depreciate Furniture and Vehicles respectively.

How much is recorded in the Statement of Financial Position for Furniture?

Select one:

a. 114 300

b. 62562

c. 59 312

d. 176 862

Answer 1

$(160,000-33,000)*(1-0.1)=114,300$

Answer a)