Compute the depreciation schedule for the machine

Reference no: EM131142333

1. A manufacturing company has purchased an alignment device for AED. 10,00,000. The device can be used for 15 years. The salvage value at the end of the life of the device is 10% of the purchase value. Compute the depreciation schedule for the machine by each of the following depreciation methods

(a) Straight line method of depreciation

(b) Sum-of-the-years digits method of depreciation

Also find the following using the double declining balance method of depreciation:

(a) Depreciation at the end of the seventh year

(b) Depreciation at the end of the twelfth year

2. The Company purchased AED 45,000 of research equipment, which it believes will have insignificant at the end of its 5-year life. Compute the depreciation schedule for the equipment by each of the following methods:

(a) Straight line.

(b) Sum-of-years'-digits.

Reference no: EM131142333

Questions Cloud

What is the likely effect on equilibrium rate of interest : What is the likely effect on the equilibrium rate of interest? Will the equilibrium amount of borrowing rise or will it fall?

What is the expected ratio of phenotypes in the offspring : What happens if a red blood cell is placed in a hypertonic solution? What is the expected ratio of phenotypes in the offspring?

What is the uniform deterministic arrival rate : what is the uniform deterministic arrival rate if the vehicle queue is cleared 35 minutes after vehicles begin to arrive?

Develop an expression for determining processing rates : Letting the number of vehicles that must actually wait in a queue be x, develop an expression for determining processing rates in terms of x.

Compute the depreciation schedule for the machine : A manufacturing company has purchased an alignment device for AED. 10,00,000. The device can be used for 15 years. The salvage value at the end of the life of the device is 10% of the purchase value. Compute the depreciation schedule for the machi..

Calculate the present discounted value if r = 5 percent : Why is the present discounted value of the prize much less than $10 million? Calculate the present discounted value if r = 5 percent.

How long after the arrival of the first vehicle will it take : If uniform deterministic processing of vehicles (collecting of fees) begins 20 minutes after the first arrival and the total delay is 3200 veh-min, how long after the arrival of the first vehicle will it take for the queue to be cleared?

How will the income effect of a higher interest rate affect : For savers, how will the income effect of a higher interest rate affect current saving? How will the substitution effect of a higher interest rate affect current savings?

What will be the maximum queue length : When will the queue that forms be cleared, what will be the total delay, and what will be the maximum queue length?

User Account

All Pages