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Question - Harvest green ltd purchase a new excavator for the landscaping business on 1st April 2030 at a cost of $ $145000 GST EXCLUSIVE. The estimated residual value is $ 15000. The excavator has useful life of 10 years and the business expect to use it for 28500 hours. It was used for hours in year 1;3000 hours in year 2; 2500 hours in year 3; 2400 hours in year 4; 2100in year 5. The end of financial year is 30 June.
Required -
1. Calculate depreciation using straight line method for 2020 and 2021?
2. Prepare a depreciation schedule for the first three years ending 30 June using diminishing balance depreciation method. Assuming the depreciation rate to be double the straight line rate.
Selling and administrative expenses for the product line are $1,300 per month. Compute the total amount budgeted for production costs for July
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Question - The ABD Company is considering buying a new machine for one of its factories, what is the project's NPV
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