The following are extracts from the Trial Balance of Fozzle plc relating to the preparation...
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Accounting
The following are extracts from the Trial Balance of Fozzle plc relating to the preparation of published financial statements for the year ending 31 December 2020:
Fozzle plc Trial Balance at 31st December 2020
Dr
Cr
'000
'000
Motor Vehicles - cost at 1-Jan-20
300
Motor Vehicles - accumulated depreciation at 1-Jan-20
60
Motor Vehicles acquired during year
40
A full years depreciation is charged in the year of acquisition and no depreciation is charged in the year of disposal. The vehicles are expected to have no residual value at the end of their useful lives. Vehicles are depreciated on a reducing balance basis of 20%. A new vehicle was acquired at a cost of 40,000 during the year, and there were no disposals of Motor Vehicles.
The charge for depreciation relating to the Motor Vehicles for the year ending 31 December 2020 will be:
a.
58,000
b.
56,000
c.
60,000
d.
68,000
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