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(a) Use the straight-line method to find the annual depreciation for a truck that costs RM78,000, has an expected life of 6 years and has
(a) Use the straight-line method to find the annual depreciation for a truck that costs RM78,000, has an expected life of 6 years and has a salvage value of RM45,000. (4 marks)
(b) Construct a depreciation schedule using the straight-line method for a machine that costs RM50,000 and has a salvage value of RM8,000 at the end of 6 years. (6 marks)
(c) A new machine costing RM25,000 is purchased. Using a declining balance rate of 15 percent, find the book value at the end of 8 years. (4 marks)
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