A company XYZ has purchased a new CNC Machine which has a cost basis of $5,000 and 8-year depreciable life. The estimated salvage value of the machine is zero at the end of 8 years. Use the Declining Balance method to calculate the annual depreciation amounts when R = 1.5/N (150% DB method). Tabulate the annual depreciation amount and Book Value for each year. (Solve question handwritten on white page clean and neat)

Principles of Accounting Volume 1
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Chapter11: Long-term Assets
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A company XYZ has purchased a new CNC Machine which has a cost basis of $5,000 and 8-year
depreciable life. The estimated salvage value of the machine is zero at the end of 8 years. Use the Declining
Balance method to calculate the annual depreciation amounts when R = 1.5/N (150% DB method).
Tabulate the annual depreciation amount and Book Value for each year. (Solve question handwritten on
white page clean and neat)
Transcribed Image Text:Question: A company XYZ has purchased a new CNC Machine which has a cost basis of $5,000 and 8-year depreciable life. The estimated salvage value of the machine is zero at the end of 8 years. Use the Declining Balance method to calculate the annual depreciation amounts when R = 1.5/N (150% DB method). Tabulate the annual depreciation amount and Book Value for each year. (Solve question handwritten on white page clean and neat)
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