Paper 1 October/November 2004 Accounting (9706/12) A Level

The following information relates to the non-current assets of a business that was formed three years ago.
In calculating the draft profit for year 3, depreciation has been consistently charged using the straight-line method.
Prior to finalising the accounts, the business decided to change the method of depreciation for year 3 to the reducing balance method at a rate of 25% per annum.
What…