2) Troy Ltd purchased a new machine on 1 October 2016 at a cost of $114,000. The entity estimated that the machine has a residual value of $18,000. The machine is expected to be used for 20,000 working hours during its 5-year life.

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Chapter1: Financial Statements And Business Decisions
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2) Troy Ltd purchased a new machine on 1 October 2016 at a cost of $114,000. The
entity estimated that the machine has a residual value of $18,000. The machine is
expected to be used for 20,000 working hours during its 5-year life.
Calculate the depreciation expense under the straight-line method for 2016 and
Transcribed Image Text:2) Troy Ltd purchased a new machine on 1 October 2016 at a cost of $114,000. The entity estimated that the machine has a residual value of $18,000. The machine is expected to be used for 20,000 working hours during its 5-year life. Calculate the depreciation expense under the straight-line method for 2016 and
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