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Colligun Water Corp. purchased machinery for Rs 315,000 on May 1, 2009. It is estimated that it would have a useful life of 10 years, salvage value of Rs 15,000, production of 240,000 units and working hours of 25,000. During 2010 Colligun Water Corp. Used the machinery for 2,650 hours, and the machinery produces 25,500 units.
Instructions
Problem 1: From the information given, compute the depreciation charge for 2010 under each of the following methods. (Round to the nearest Rupee)
(a) Straight-line. (b) Units-of-output.(c) Working hours. (d) Sum-of-the-years'-digits. (e) Declining-balance (use 20% as the annual rate.)
This is expected to result in additional cash flows of $ 1, 210,000 million over the next 7 years. What is the payback period for this project?
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1.What indicators suggest that a performance obligation has been satisfied with respect to a good (merchandise)?
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