1. The cost of a certain machinery is $30,000. Its useful life is 6 years, and its resale value is $5,000. Estimate the book value of the machine after 2 years, using constant percentage depreciation method. Tabulate the annual depreciation amounts and the book value of the equipment at the end of each vear.

1. The cost of a certain machinery is $30,000. Its useful life is 6 years, and its resale value is $5,000. Estimate the book value of the machine after 2 years, using constant percentage depreciation method. Tabulate the annual depreciation amounts and the book value of the equipment at the end of each vear.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. The cost of a certain machinery is $30,000. Its useful life is 6 years, and its resale value
is $5,000. Estimate the book value of the machine after 2 years, using constant
percentage depreciation method. Tabulate the annual depreciation amounts and the book
value of the equipment at the end of each year.

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