Answer ( 1 )

  1. This comment is edited.

    Dep as per st.line method=(35000-0)×5%= 17500
    Yr.of change in dep method =(350000-297500)/17500=4yrs
    Q.30 (c)
    It is assumed that change in depreciation policy is initiated at the begining of year and as per co. Policy dep is charged in full for partial year also. Wdv is applied at the end of 4th year. So change in method adjustment should be done for 3yrs.(student’s note)
    Year. Wdv. Dep
    1. 350000. 28000
    2. 322000. 25760
    3. 296240. 23700
    Total dep= 77460

    Extra dep to be charged =77460-52500=24960
    Q.34 (a)

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