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Planet Enterprises is purchasing a $12 million machine. It will cost $60 000 to transport and install the machine. The machine has a depreciable life
Planet Enterprises is purchasing a $12 million machine. It will cost $60 000 to transport and install the machine. The machine has a depreciable life of five years and will have no salvage value. If Planet uses straight-line depreciation, what are the depreciation expenses associated with this machine?
So the solutions says the Capitalisation of machine: $10,050,000. I don't understand how to get this number. Why not just (12 million / 5) ?
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