An equipment was bought at 600,000 JD. The life time of the equipment is 10 yearsat the end of which its salvage value is 10,000 JD. The depreciation rate using thestraight line method isA. 10,000 JDB. 59,000 JD/yearC. 59,000 JDD. 60,000 JD/year

Purchase Cost of equipment = 600,000 JDSalvage Value = 10,000 JDLifetime = 10 years

Answered: An equipment was bought at 600,000 JD.…

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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An equipment was bought at 600,000 JD. The life time of the equipment is 10 years at the end of which its salvage value is 10,000 JD. The depreciation rate using the straight line method is A. 10,000 JD B. 59,000 JD/year C. 59,000 JD D. 60,000 JD/year