Firm B purchased a machine at a price of 10,000 RMB. The life was estimated to be 5 years and the residual value was estimated to be 200 RMB. For the first three years, double-declining balance method was adopted. At the beginning of the fourth year, the firm changed the depreciation method to straight-line method. Please determine the depreciation expense and net book value for each year and show the calculation process.

Firm B purchased a machine at a price of 10,000 RMB. The life was estimated to be 5 years and the residual value was estimated to be 200 RMB. For the first three years, double-declining balance method was adopted. At the beginning of the fourth year, the firm changed the depreciation method to straight-line method. Please determine the depreciation expense and net book value for each year and show the calculation process.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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