At the beginning of 2011, the Rolls-Royce Group

At the beginning of 2011, the Rolls-Royce Group reported in its footnotesthat its plant and equipment had an original cost of £2,538 million andthat accumulated depreciation was £1,497. Rolls-Royce depreciates itsplant and equipment on a straight-line basis under the assumption thatthe assets have an average useful life of 13 years (assume a 10 percentsalvage value). Rolls-Royce’s tax rate equals 26.5%.What adjustments should be made to Rolls-Royce’s(i) balance sheet at the beginning of 2011; and(ii) income statement for the year 2011, if you assume that the plantand equipment has an average useful life of ten years (and a 10percent salvage value)?

 

Looking for a Similar Assignment? Let us take care of your classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Use Code FREE15