11-6) A construction company needs asphalt machinery and equipment to pave a road for 600,000 units. The working hours per year for machines in the next 8 years will be as follows Year Hours a year 3000 1 2 4000 3 4000 4 1600 5 1800 6 1800 7 2200 8 2200 If at the end of the asphalt work of this road, which is estimated to be eight years old, the machines have a scrap value of 60,000 units, perform the following calculations: A) Depreciation amounts and book value using SOYD method B) Depreciation amounts and book value using the depreciation method based on the duration of the operation C) Which of the above depreciation methods is more economical? MARR = 10%

11-6) A construction company needs asphalt machinery and equipment to pave a road for 600,000 units. The working hours per year for machines in the next 8 years will be as follows Year Hours a year 3000 1 2 4000 3 4000 4 1600 5 1800 6 1800 7 2200 8 2200 If at the end of the asphalt work of this road, which is estimated to be eight years old, the machines have a scrap value of 60,000 units, perform the following calculations: A) Depreciation amounts and book value using SOYD method B) Depreciation amounts and book value using the depreciation method based on the duration of the operation C) Which of the above depreciation methods is more economical? MARR = 10%

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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