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Please help me, am stuck. 1 Jan Purchased an automated production machine from Germany at a purchase price of $500,000, fully paid in cash. The
Please help me, am stuck.
1 Jan Purchased an automated production machine from Germany at a purchase price of $500,000, fully paid in cash. The machine was purchased on FOB Shipping Point terms. Sea freight was at $10,000 inclusive of insurance. Custom duty was at 1% of the purchase price and land delivery costs $200. The machine had to be installed at a cost of $1,000 upon arrival at the factory. During the installation, a part of the machine was accidentally damaged which cost $200 to be restored to its original condition. To facilitate the installation, a professional engineer is required to certify the process which takes about 3 hours. The company is charged for the engineer's service at the rate of $250 per hour. The machine is estimated to have a useful life of 10 years at a residual value of $200,000. The double- declining balance method is to be used for depreciation on production machines. (2) How many years will it take to fully depreciate the automated production machine? Compute the depreciation expense of the automated production machine in the final year of depreciationStep by Step Solution
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