B acquired a lorry on 1 May 2014 at a cost of $400,000. The lorry has an estimated useful life of ten years, and an estimated resale value at the end of that time of $8,000. B charges depreciation on the straight line basis, with a proportionate charge in the period of acquisition.
What will be the depreciation charge for the lorry be in B's accounting period to 30 September 2014?
SUGGESTED SOLUTIONS
(cost - residual )/ years X 5/12 months
= (400,000 - 8,000) /10 X 5/12
= $ 16,333