ADCO Ltd purchased a plant at a cost R897 000 (VAT inclusive) on 1st May 2021. The residual value of the plant is estimated to be R90 000 (excluding vat). Depreciated on the plant is calculated at 20% per annum. ADCO Ltd financial year end is 28Th February. The company is registered for VAT.
Calculate the depreciation for the plant for the financial year ended 2022 (Assume a diminishing balance method of depreciation-20%).
Select one:
a. R179 000
b. R156 000
c. R149 000
d. R130 000