Last year, your company, a Gl class contractor has invested in a construction machinery costing RM 500,000. The life cycle of machinery is about 5 years. Then the company usually will replace with a new machinery to reduce an operation and maintenance cost. The percentage of depreciation value (per year) are shown in Table 1. Select ONE (1) year when you want to sell and calculate the value of sunk cost. OPEN ENDED C3 Table 1 Percent of Depreciation Value and Sold Price Percent of Depreciation Value (per year) Year Sold Price (RM) 6% 210000 3 8% 195000 4 10% 175000 5 12% 150000

Last year, your company, a Gl class contractor has invested in a construction machinery costing RM 500,000. The life cycle of machinery is about 5 years. Then the company usually will replace with a new machinery to reduce an operation and maintenance cost. The percentage of depreciation value (per year) are shown in Table 1. Select ONE (1) year when you want to sell and calculate the value of sunk cost. OPEN ENDED C3 Table 1 Percent of Depreciation Value and Sold Price Percent of Depreciation Value (per year) Year Sold Price (RM) 6% 210000 3 8% 195000 4 10% 175000 5 12% 150000

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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