Q/ A contractor bought a construction mechanism at a price of $80,000. Records indicate that the useful life of a similar mechanism is 6 years, that it has a value of rubble of $10,000 at the end of its economic life, and that the annual compound interest rate is 10%. Required: Calculating the annual premium for depreciation, accumulated depreciation and the book value at the end of each year of the machine's life Using the following methods: 1- The straight line method. 2- Fixed ratio method. 3- The method of collecting the numbers of the years. 4- The method of declining capital. Note: A table is made for each method separately because the requirements are for all years and not for one year

Q/ A contractor bought a construction mechanism at a price of $80,000. Records indicate that the useful life of a similar mechanism is 6 years, that it has a value of rubble of $10,000 at the end of its economic life, and that the annual compound interest rate is 10%. Required: Calculating the annual premium for depreciation, accumulated depreciation and the book value at the end of each year of the machine's life Using the following methods: 1- The straight line method. 2- Fixed ratio method. 3- The method of collecting the numbers of the years. 4- The method of declining capital. Note: A table is made for each method separately because the requirements are for all years and not for one year

Name: Q/ A contractor bought a construction mechanism at a price of $80,000
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Description: Q/ A contractor bought a construction mechanism at a price of $80,000. Records indicate that the useful life of a similar mechanism is6 years, that it has a value of rubble of $10,000 at the end of its economic life, and that the annual compound int

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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