Neville Box Chapter 13 Case Study

[Rockim]

Why is it that the depreciation for the first vehicle $6400 in the solutions?

shouldn't it be $9600 for the year ended 30 June 2010?

Thanks in advance

[Yitzi_K]

Why is it that the depreciation for the first vehicle $6400 in the solutions?

shouldn't it be $9600 for the year ended 30 June 2012?

Thanks in advance

I haven't seen the question but did he own the vehicle for the full year? If he only owned it for part of the year the depreciation would be less that the yearly amount.

[Buharrr]

the depreciation of the first vehicle should be $6400 as the report from 1 july 2011 to 30 june 2012 is a year and therefore yearly depreciation is $6400

[Rockim]

sorry my bad, i meant year ended 30 June 2010.......... not 2012

[Buharrr]

well
since the reports are prepared yearly
the report from 1 july 2008 to 30 june 2009 will include $3200 as the depreciation expense since it was bought on the the first of july 2009. 6 months worth
Therefore for the report from 1 july 2009 to 30 june 2010, the amount of depreciation is the yearly value of $6400 and should be reported.
Be careful to check that it is a yearly reporting period.

[Rockim]

oh thanks man

I kept thinking about accumulated depreciation