Need help on a depreciation question please
For this i get
£350,000 - £140,000 / 7 = £30,000 deprecation per year
Jan x2 - Jan x6 = 4 * £30,000 = £120,000
Therefore (£350,000 - £140,000 - £120,000) = £90, 000 this should be the deprecation in the last year?
Four years have already been used and this was re-assessed to 5 years meaning there if only one year remaining?
But the answer is £18,000 (£90,000 / 5 ) but this would mean the item has a total life of 8 years ...
Is my trail of thought wrong here is £18,000 correct and if yes how please?
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