A machine depreciates by 12% each year. The original cost is 8,500. Make out a scheduleshowing the book value at 6th year. (Declining Balance Method)A. 5,097.41В. 5,792.51О с. 3,947.43O D. 4,485.72

Given: Cost of asset = 8,500 Depreciation rate = 12%

Answered: A machine depreciates by 12% each year.…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A machine depreciates by 12% each year. The original cost is 8,500. Make out a schedule showing the book value at 6th year. (Declining Balance Method) A. 5,097.41 B. 5,792.51 O C. 3,947.43 D. 4,485.72