Answer the following: 1. How much should be recorded as cost of Land, Building and Machinery? 2. Assuming that the Building will be depreciated over 10 years with no salvage value, how much should be the annual depreciation expense? 3. Assume that the company will use unit-of production method for the depreciation of machinery. The estimated total production is 1000.000 units with the following production for the next 5 years of its life: 30%, 35%, 20% 10%, 5%, respectively each year. The machine has no salvage value. What will be the depreciation expense for the third year?
Answer the following: 1. How much should be recorded as cost of Land, Building and Machinery? 2. Assuming that the Building will be depreciated over 10 years with no salvage value, how much should be the annual depreciation expense? 3. Assume that the company will use unit-of production method for the depreciation of machinery. The estimated total production is 1000.000 units with the following production for the next 5 years of its life: 30%, 35%, 20% 10%, 5%, respectively each year. The machine has no salvage value. What will be the depreciation expense for the third year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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