The purchase of an item of construction equipment is fifty thousand Kenya shillings(kshs) . The economic working life of the equipment is ten years at the end of which its residual value is estimated to be five thousand kenya shillings (kshs). Assume annual working hours is 2000 hours and the prevailing bank interest is 15%. A)Determine the annual book values of the equipment by the following depreciation methods i)By Sinking fund method ii)by declining balance method
The purchase of an item of construction equipment is fifty thousand Kenya shillings(kshs) . The economic working life of the equipment is ten years at the end of which its residual value is estimated to be five thousand kenya shillings (kshs). Assume annual working hours is 2000 hours and the prevailing bank interest is 15%. A)Determine the annual book values of the equipment by the following depreciation methods i)By Sinking fund method ii)by declining balance method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The purchase of an item of construction equipment is fifty thousand Kenya shillings(kshs) . The economic working life of the equipment is ten years at the end of which its residual value is estimated to be five thousand kenya shillings (kshs). Assume annual working hours is 2000 hours and the prevailing bank interest is 15%.
A)Determine the annual book values of the equipment by the following
i)By Sinking fund method
ii)by declining balance method
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