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also explain what you did in part C ABC Ltd, bought a machine for $5,000,000 on 2 J anuary 200025% annual depreciation rate is applied
also explain what you did in part C
ABC Ltd, bought a machine for $5,000,000 on 2 J anuary 200025% annual depreciation rate is applied if the company decides to use declining balance method. Other information related to the company at the end of January 2000 is as follows: Capital: 50,000,000 Cash: 20,000,000 Freight cost (Machine): 500,000 Installation cost (Machine): 1,500,000 Electricity Expense: 400,000 Sales: 900,000 Administrative Expenses: 200,000 Life of the new machine is 5 years. a) Record depreciation entries for the first 6 mnths using declining balance method. b) Find Net Book Value of the machine at the end of June 2000. c) Record all depreciation entries using straight line methodStep by Step Solution
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