11-7) A building stone extraction company has purchased drilling machines for 1,200,000 units. The scrap value of these machines after 8 years will be 200,000 monetary units. The production capacity of these machines in the next 8 years is as follows: Year Production in tons 1 5000 2 6000 3 8000 4 10000 5 12000 10000 7 8000 8 6000 Depreciation and book value are calculated using SOYD and production-based depreciation methods and select the most economical method. MARR = 8% %3D

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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11-7)

11-7) A building stone extraction company has purchased drilling machines for 1,200,000 units. The
scrap value of these machines after 8 years will be 200,000 monetary units. The production capacity of
these machines in the next 8 years is as follows:
Year
Production in tons
1
5000
2
6000
3
8000
4
10000
5
12000
10000
7
8000
8
6000
Depreciation and book value are calculated using SOYD and production-based depreciation methods and
select the most economical method. MARR = 8%
Transcribed Image Text:11-7) A building stone extraction company has purchased drilling machines for 1,200,000 units. The scrap value of these machines after 8 years will be 200,000 monetary units. The production capacity of these machines in the next 8 years is as follows: Year Production in tons 1 5000 2 6000 3 8000 4 10000 5 12000 10000 7 8000 8 6000 Depreciation and book value are calculated using SOYD and production-based depreciation methods and select the most economical method. MARR = 8%
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