Hamelin acquires equipment costing 600,000 and deducts the grant received of 150,000 from its carrying amount. Residual value: 30,000; useful life: 6 years, straight-line depreciation (case conventions). Calculate the cost net of the grant, then the annual depreciation charge.
- Cost of the equipment
- 600,000
- Grant deducted from the carrying amount
- 150,000
- Residual value (on the net cost)
- 30,000
- Useful life
- 6