M Hidayah is a sole trader who maintains his non-current assets at cost. On ‘ Rajni December 20X1, he owned the following non-current assets which had been depreciated on a yearly basis:
During the year ended 31 December 20X2, motor vehicles worth RM100,000 and fixtures worth RM13,000 were purchased.
The motor vehicles were depreciated at 10% per annum using the straight-line method and the fixtures at 20% per annum using the reducing balance method.
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