(a) A business buys a machine for N$20 000. Over aperiod of 8 years, the value of a machine depreciatesto N$0. Using straight line method, what is thevalue of the machine after 4 years?(b) Two friends in the construction business decidedto buy cars for their businesses. Mr. Shikongobought a car costing N$450 000. It is estimated thatat the end of 5 years, the car will be worth N$400000. Mr. Smith bought exactly the same car butdecided to depreciate it at 2% each year. Calculatethe value of the car to Mr. Shikongo and Mr. Smithat the end of the 4th year.

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(a) A business buys a machine for N$20 000. Over a period of 8 years, the value of a machine depreciates to N$0. Using straight line method, what is the value of the machine after 4 years?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 7EB: Kenzie purchased a new 3-D printer for $450,000. Although this printer is expected to last for ten...

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