Question
Q No 3 (9) (A) A company bought machine on July 1, 1998 at a list price of Rs.80, 000. Trade discount availed 10%. Credit
Q No 3 (9)
(A) A company bought machine on July 1, 1998 at a list price of Rs.80, 000. Trade discount availed 10%. Credit term is 2.5/10, n/45. Company paid following expenses: (05)
Installation charges Rs.5000 Foundation charges Rs.12500 Trial run cost Rs. 2000
The estimated life of the machine is expected to be 6 years and expected scrap value is Rs.9500.
Required: 1) Compute total cost of the machine (2)
- Compute depreciation for the year 1998-2003 under following methods using schedule:
- Straight line method (1)
- MACRS method (1)
- Double declining balance method (1)
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Intermediate Accounting 2014 FASB Update
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
15th edition
978-1118938782, 111893878X, 978-1118985311, 1118985311, 978-1118562185, 1118562186, 978-1118147290
