Wajasetia Security company has received a contract to provide additional security for the outdoor theme park at Bangi Water World. They plan to propose a CCTV system equipment for use in the 11 -years contract. The equipment is expected to cost RM115,000. Assume the recovery period for this product is 5 years. (i) Calculate the annual depreciation amount and book value by using 150% Decline Balance method. (ii)Refer to the result in Q1(b)(i), identify the book value at the end of year 3.

Wajasetia Security company has received a contract to provide additional security for the outdoor theme park at Bangi Water World. They plan to propose a CCTV system equipment for use in the 11 -years contract. The equipment is expected to cost RM115,000. Assume the recovery period for this product is 5 years. (i) Calculate the annual depreciation amount and book value by using 150% Decline Balance method. (ii)Refer to the result in Q1(b)(i), identify the book value at the end of year 3.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 6CE

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