Nikhil Limited purchased a machine on 1st July, 2019 for 8, 90,000 and freight and transit insurance premium paid 25,000 and 15,000respectively. Installation expenses were 40,000 and salvage value after 5 year will be 50,000. Under straight line method for the yearended 31st March, 2020 the amount of depreciation will be:1,81,0001,35,7501,38,0001,84,000

Cost of the asset includes the purchase cost and all directly attributable costs.Cost of the machine…

Answered: Nikhil Limited purchased a machine on…

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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Peanut Company purchased a machine on January 1, 2019, for $100,000 with a $20,000 salvage value and an eight-year useful life. The company uses double-declining-balance depreciation. Required:Compute the depreciation expense for 2019 and 2020. Year DepreciationExpense 2019 $fill in the blank 1 2020 $fill in the blank 2
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