Question
A company purchases a new machine for $98000 units of production on January 1, 2014. Its predicted useful life is 5 years or 100000 units
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A company purchases a new machine for $98000 units of production on January 1, 2014. Its predicted useful life is 5 years or 100000 units of product and its residual value is $8000. During 2014, $20000 units of product are produced. Calculate the book value of the machine using
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Straight line method (include graphs)
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Units of production method
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Assume that the useful life is now 7 months longer. How will your answer to part (a) change?
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ISE Business Accounting
Authors: Frank Wood, Alan Sangster
8th Edition
0273638408, 9780273638407
