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Question 1: Purchase a piece of machinery for my business for $96 000. Wish to compare straight line and diminishing value depreciation to determine which will give the higher book value after 8 years.
a) If it has a scrap value of $20 000 and a useful life of 12 years. What will its book value be after 8 years?
b) If it depreciates at 12% per annum, what will its book value be after 8 years?
c) Which method gives me the higher book value after 10 years?
Question 2: Top of the range running shoes cost $215 each. If they cost the store $95 each to make, what is the percentage markup?
The expense recognition principle relates to credit losses by stating
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The inventory is recorded at the lower of cost and net realisable value
Joey parked his car on the top of a hill when he went to watch the Superbowl games in San Diego. He did not properly set his brakes or curb the wheels when he packed the car.
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