The company bought a machine whose value was 4,500,000 thousand and its useful life was estimated at four years and the value of scrap at the end of its useful life was estimated at 50,000 thousand. Requirement // calculate the depreciation premium on the basis of the straight-line method.

The company bought a machine whose value was 4,500,000 thousand and its useful life was estimated at four years and the value of scrap at the end of its useful life was estimated at 50,000 thousand. Requirement // calculate the depreciation premium on the basis of the straight-line method.

Structural Analysis

6th Edition

ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

Problem 1P

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Concept explainers

Tax Significance of Depreciation

While calculating taxes, depreciation is the method used to allocate the cost of a tangible or immovable asset over the useful life of an asset. In other words, allocate part of that cost to the times when tangible assets help generate revenue or sales. By recording the depreciation of an asset, depreciation reduces the amount of taxes a company or business pays in tax deductions.

Question

The company bought a
machine whose value was
4,500,000 thousand and its
useful life was estimated at
four years and the value of
scrap at the end of its useful
life was estimated at 50,000
thousand. Requirement //
calculate the depreciation
premium on the basis of the
straight-line method.

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