Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 4. maddy ltd. purchased an equipment for rs. 5,00,

4. Maddy Ltd. purchased an equipment for Rs. 5,00,000; estimated residual value: 25,000, estimated useful...

60.1K

Verified Solution

Question

Accounting

image

4. Maddy Ltd. purchased an equipment for Rs. 5,00,000; estimated residual value: 25,000, estimated useful life: 5 yrs; depreciation to be charged under WDV method. After using the asset for 3 years Maddy decided to change the depreciation policy and move to straight line method. 1. Prepare journal entry to record depreciation expense for year 4. 2. Compute depreciation expense for year 4 without giving effect to the change in depreciation policy. What is the impact of the change on the profit before tax for year 4? 3. What disclosures should Maddy Ltd. make in its financial statements for year 4

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students