Question
ABC & Co imported machine from Italy at Rs.1,256,000, Co. paid freight charges Rs.75,000 and insurance in transit Rs.25000. Co also paid import duty Rs.235,000
ABC & Co imported machine from Italy at Rs.1,256,000, Co. paid freight charges Rs.75,000 and insurance in transit Rs.25000. Co also paid import duty Rs.235,000 and transportation charges Rs.5000. Foundation and installation cost incurred Rs. 125,000. Test run cost incurred Rs.15,000. Estimated life of the machine is 20 years and expected scrap value is Rs.250,000.
Required: 1) Compute total cost of the machine
2) Compute depreciation expense under following methods for three years using schedule:
Straight line method
MACRS method
Double declining balance method
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Financial Accounting
Authors: LibbyShort
7th Edition
978-0078111020
