Home For AAT student members AQ 2016 Advanced Diploma in Accounting Advanced Bookkeeping
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Depreciation of non curret asset after part exchange of an old one.

Question; Original vehicle cost £6000, after 3 years a p/x allowance of £1750 was given for the old vehicle towards a new one. Paid cash on new vehicle of £5546.
Depreciation is 8 years on straight line basis.
Full year depreciation is applied in year of acquistion but non in year of disposal.

Calculate the depreciation on the new vehicle?

Answer: (1750+5546)/8 =£912
That was my answer and I got it wrong, can someone please explain how that could have been wrong.
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