Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question Ref. No: 3242 Boatan Company is a middle size manufacturing company located at Jalan Kelang. The company just purchased an intelligent robot for its

Question Ref. No: 3242 Boatan Company is a middle size manufacturing company located at Jalan Kelang. The company just purchased an intelligent robot for its manufacturing line for RM570000 from Germany. The RM570000 inclusive of the transportation cost of RM50000 and import duty cost of RM100000. Since the robot is unique in its capabilities, the company has to pay RM30000 to an expert to specially train its staff on how to operate the robot. In addition the company spends RM16000 per year in the maintenance and operation of the robot. The robot is expected to be used for 5 years with an estimated salvage value of RM110000 at the end of its useful life.

a) Determine the cost basis of the robot purchased. Format : 800000
b) Straight Line depreciation method. Determine the DEPRECIATION at Year 3 Format : 25000
c) Straight Line depreciation method. Determine the BOOK VALUE at Year 3 Format : 204000
d) 150% Declining Balance method. Determine the DEPRECIATION expense at Year 3 Format : 72200
e) 150% Declining Balance method. Determine the BOOK VALUE at Year 3 Format : 704800

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost And Management Accounting An Introduction

Authors: Colin Drury

7th Edition

1408032139, 978-1408032138

More Books

Students also viewed these Accounting questions

Question

What are your biggest accomplishments?

Answered: 1 week ago

Question

finding entry-level positions;

Answered: 1 week ago

Question

=+What would you say if the person were in front of you?

Answered: 1 week ago

Question

=+ How could you make it more engaging and entertaining?

Answered: 1 week ago