Dfs

Liliana

Hi There

I am trying to do the cashflow for the Dec 08 paper and i can't understand where does the NBV of £580 comes from when the cost is £1060, depreciation £436 and the difference should be the NBV of £624...

Am i missing something here? Please help!!!

Thanks in advance

Lily

RuthKirby

Cost of asset wrong

As far as I can see from the paper the equipment cost 1,016 rather than 1060 which gives you the correct depreciation. Hope this helps.


• Property, plant and equipment costing £1,016,000 with accumulated depreciation of £436,000 were sold in the year at a profit of £880,000.

Liliana

Oh my God!!! I can't believe that i did this!!!! THANK YOU SO MUCH!!!
Must read the numbers properly!!!! Hope not to make this error in the exam!!!
I am actually embarrassed!!!
Thank you
Lily