On January 1, 1978, the purchasing engineer of a Cement Co. purchased a new machine at a cost of140,000. Depreciation has been computed by the straight-line method based on an estimated useful lifeof five years and residual scrap value of 12,800. On January 2, 1981, extraordinary repairs (which werealmost equivalent to a rebuilding of machinery) were performed at a cost of 30,400. Because of thethorough going nature of these repairs, the normal life of the machinery was extended materially. Therevised estimate of useful life was four years from January 1, 1981.Determine the annual provision for depreciation for the years 1978 to 1980 and the adjusted provisionfor depreciation on December 31, 1981. Assume payment in cash for the machine and extraordinaryrepairs. construct a straight line method
On January 1, 1978, the purchasing engineer of a Cement Co. purchased a new machine at a cost of140,000. Depreciation has been computed by the straight-line method based on an estimated useful lifeof five years and residual scrap value of 12,800. On January 2, 1981, extraordinary repairs (which werealmost equivalent to a rebuilding of machinery) were performed at a cost of 30,400. Because of thethorough going nature of these repairs, the normal life of the machinery was extended materially. Therevised estimate of useful life was four years from January 1, 1981.Determine the annual provision for depreciation for the years 1978 to 1980 and the adjusted provisionfor depreciation on December 31, 1981. Assume payment in cash for the machine and extraordinaryrepairs. construct a straight line method
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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On January 1, 1978, the purchasing engineer of a Cement Co. purchased a new machine at a cost of140,000. Depreciation has been computed by the straight-line method based on an estimated useful lifeof five years and residual scrap value of 12,800. On January 2, 1981, extraordinary repairs (which werealmost equivalent to a rebuilding of machinery) were performed at a cost of 30,400. Because of thethorough going nature of these repairs, the normal life of the machinery was extended materially. Therevised estimate of useful life was four years from January 1, 1981.Determine the annual provision for depreciation for the years 1978 to 1980 and the adjusted provisionfor depreciation on December 31, 1981. Assume payment in cash for the machine and extraordinaryrepairs.
construct a straight line method
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