FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Q1) A catering company buys a delivery truck for $34000 for its everyday business. The lifetime of the truck is estimated Five years and the production life in Kilometers is 200 000 KM. The residual value at the end of its lifetime is $4000. The truck has the following production in five years.
Year 1 |
30 000 KM |
Year 2 |
40 000 KM |
Year 3 |
50 000 KM |
Year 4 |
70 000 KM |
Year 5 |
10 000 KM |
Requirements:
Compute the
- Straight Line Depreciation.
- Activity Method.
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