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Question 5 (30 marks): CO2, 3,6 In computing depreciation, three values must be known or estimated; identify and explain the nature of each. (10 marks)

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Question 5 (30 marks): CO2, 3,6 In computing depreciation, three values must be known or estimated; identify and explain the nature of each. (10 marks) Assume that Nestl Vietnam purchased a new stamping machine for its products in Dong Nai industrial park on Jan 1, 2018. The purchase price of this new stamping machine was $900,000, In addition, Nestl had to pay $30,000 for transportation cost and $70,000 for installation cost. The company planned to use this machine for next 10 years and estimated residual value after 10 years is $100,000 Required 1) Calculate the depreciation expenses for each year of 2018 and 2019 with the straight-line method. What should be the book value of the new stamping machine at the end of 2019? (10 marks) 2) Calculate the depreciation expenses for each year of 2018 and 2019 with the double declining method. What should be the book value of the new stamping machine at the end I of 2019? (10 marks) 2

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