1 Black and Blue Ltd depreciates its forklift trucks using a reducing balance rate of 30 per cent. Its accounting year end is 30 September. On 30 September 2006, it owned four forklift trucks: (A)...

1

Black and Blue Ltd depreciates its forklift trucks using a reducing balance rate of 30 per

cent. Its accounting year end is 30 September. On 30 September 2006, it owned four forklift trucks:

(A) Purchased on 1 January 2003 for £2,400

(B) Purchased on 1 May 2004 for £2,500

(C) Purchased on 1 October 2004 for £3,200

(D) Purchased on 1 April 2006 for £3,600

Required:

Calculate the depreciation provision for the year ending 30 September 2006.