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The following data for a machinery is available: Purchase price (incl. 20%VAT) 360 000 EUR Salvage value (excl VAT) 10 000 EUR useful life (=estimated
The following data for a machinery is available:
Purchase price (incl. 20%VAT) | 360 000 EUR |
Salvage value (excl VAT)
| 10 000 EUR |
useful life (=estimated service life) | 7 years |
production capacity 580 000 hours
1st year: production (2006) 120 000 hours
2nd year: production (2007) 160 000 hours
3rd year: production (2008) 130 000 hours
4th year: production (2009) | 80 000 hours |
5th year: production (2010) | 50 000 hours |
6th year: production (2011) | 40 000 hours |
7th year: production (2012) | 30 000 hours |
- Calculate the straight-line depreciation. (straight-line method)
- Calculate the depreciation based on the activity method.
- What other depreciation methods do you know?
- Calculate the depreciation for 2006 and the book value (31.12.2006) in accordance with the Austrian (taxation) regulations (straight-line) if the machinery has been purchased at 30 May 2006.
- Calculate the depreciation for 2006 and the book value (31.12.2006) in accordance with the Austrian (taxation) regulations (straight line) if the machinery has been purchased at 5 August 2006.
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