Machine 1 costs X, has a salvage value of X/8, and is to be depreciated over 10 years using declining balance method. Machine 2 costs Y, has a salvage value of X/8, and is depreciated over 10 years using the SOYD method. The total amount of the depreciation in the first seven years for Machine 1 is equal to the total amount of depreciation in the first seven years for Machine 2. Calculate the value of Y/X. (EXPRESS YOUR ANSWER IN 4 DECIMAL PLACE). "ANSWER: 0.9856

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Machine 1 costs X, has a salvage value of X/8, and is to be depreciated over 10 years using declining
balance method. Machine 2 costs Y, has a salvage value of X/8, and is depreciated over 10 years using
the SOYD method. The total amount of the depreciation in the first seven years for Machine 1 is equal to
the total amount of depreciation in the first seven years for Machine 2. Calculate the value of Y/X.
(EXPRESS YOUR ANSWER IN 4 DECIMAL PLACE). *ANSWER: 0.9856
Transcribed Image Text:Machine 1 costs X, has a salvage value of X/8, and is to be depreciated over 10 years using declining balance method. Machine 2 costs Y, has a salvage value of X/8, and is depreciated over 10 years using the SOYD method. The total amount of the depreciation in the first seven years for Machine 1 is equal to the total amount of depreciation in the first seven years for Machine 2. Calculate the value of Y/X. (EXPRESS YOUR ANSWER IN 4 DECIMAL PLACE). *ANSWER: 0.9856
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