Vohra purchased a boat at a cost of $12,000. The boat has an estimated residual value of $2,000 and an estimated life of five years, or 100,000 hours of operation. The boat was purchased on 1 July 2017 and was used 27,000 hours in 2017/18 and 26,000 hours in 2018/19. If Vohra uses the straight-line method, what is the carrying amount (book value) at 30 June 2020? a. $10,000 b. $4,000 c. $8,000 d. $6,000
Vohra purchased a boat at a cost of $12,000. The boat has an estimated residual value of $2,000 and an estimated life of five years, or 100,000 hours of operation. The boat was purchased on 1 July 2017 and was used 27,000 hours in 2017/18 and 26,000 hours in 2018/19. If Vohra uses the straight-line method, what is the carrying amount (book value) at 30 June 2020? a. $10,000 b. $4,000 c. $8,000 d. $6,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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