Solve the parts a,b,c as they are related Sohar Potato Chips LLC purchased a machine for OMR 12,000 for which depreciation will be measured as per diminishing balance method (WDV). Depreciation is calculated at 10% per annum for first 3 years and after that due to change in the accounting standards the rate of depreciation is changed at 7% per annum for next 2 years. A. What would be the book value of the machine after 5 years B. The accounts department informed you that book value of the machine after 5 years will be OMR 6500. Critically analyze C, If the useful life of the machine is 5 years, what will be the scrap value of the machine?
Solve the parts a,b,c as they are related Sohar Potato Chips LLC purchased a machine for OMR 12,000 for which depreciation will be measured as per diminishing balance method (WDV). Depreciation is calculated at 10% per annum for first 3 years and after that due to change in the accounting standards the rate of depreciation is changed at 7% per annum for next 2 years. A. What would be the book value of the machine after 5 years B. The accounts department informed you that book value of the machine after 5 years will be OMR 6500. Critically analyze C, If the useful life of the machine is 5 years, what will be the scrap value of the machine?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Solve the parts a,b,c as they are related
Sohar Potato Chips LLC purchased a machine for OMR 12,000 for which depreciation will be measured as per diminishing balance method (WDV). Depreciation is calculated at 10% per annum for first 3 years and after that due to change in the accounting standards the rate of depreciation is changed at 7% per annum for next 2 years.
A. What would be the book value of the machine after 5 years
B. The accounts department informed you that book value of the machine after 5 years will be OMR 6500. Critically analyze
C, If the useful life of the machine is 5 years, what will be the scrap value of the machine?
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