d. M/s. Sanders and Sons purchased a machine on 1 Apr 2015 for $400,000 from ABČ & Co. and paid $100000 on its installation. The useful life of the machine is 3 years and its estimated residual value is $40000. On 31st March 2018, M/s. Sanders and Sons sell the machinery for 250,000. Charge depreciation as per the declining balance method @10 % p. a. Calculate a. accumulated depreciation for every year and b. loss/ profit earned by the firm after disposing off the machine.
d. M/s. Sanders and Sons purchased a machine on 1 Apr 2015 for $400,000 from ABČ & Co. and paid $100000 on its installation. The useful life of the machine is 3 years and its estimated residual value is $40000. On 31st March 2018, M/s. Sanders and Sons sell the machinery for 250,000. Charge depreciation as per the declining balance method @10 % p. a. Calculate a. accumulated depreciation for every year and b. loss/ profit earned by the firm after disposing off the machine.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:d. M/s. Sanders and Sons purchased a machine on 1 Apr 2015 for $400,000 from ABC & Co.
and paid $100000 on its installation. The useful life of the machine is 3 years and its estimated
residual value is $40000. On 31st March 2018, M/s. Sanders and Sons sell the machinery for
250,000. Charge depreciation as per the declining balance method @10 % p. a. Calculate
a.
accumulated depreciation for every year and
b.
loss/profit earned by the firm after disposing off the machine.
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