2- Return to the abov end of year 3 instr

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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need the answer for question 2 only

1- A machine has a basic cost of 7000 and a market value of 5000 at the end of year 6. Ifi-5%. What is
the capital recovery (CR) of the machine?
a) 791
b) 644
c) 497
d) 900
e) 820
* Return to the above question. If the CR value is s800, what is the market value of this machine at the
end of year 3 instead of year 6?
a) 6497.6
b) 7361.3
c) 5440.6
d) 5633.8
e) 6681
Transcribed Image Text:1- A machine has a basic cost of 7000 and a market value of 5000 at the end of year 6. Ifi-5%. What is the capital recovery (CR) of the machine? a) 791 b) 644 c) 497 d) 900 e) 820 * Return to the above question. If the CR value is s800, what is the market value of this machine at the end of year 3 instead of year 6? a) 6497.6 b) 7361.3 c) 5440.6 d) 5633.8 e) 6681
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