The Souvenir Company purchased, on 1 January 2015, a machine producing embossed  souvenir badges. The machine cost £32,000 and was estimated to have a five-year life with  a residual value of £2,000. The company plans on using one out of the two most important  methods of deprecation which are straight line & Written down value methods. The CEO  wants to decide on which method based on a few calculations that he asks you to perform  which are given below. Prepare the required calculations to help the CEO arrive at a final  decision. Required (a) Prepare a table of depreciation and net book values over the five-years using straight-line  depreciation.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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 The Souvenir Company purchased, on 1 January 2015, a machine producing embossed 
souvenir badges. The machine cost £32,000 and was estimated to have a five-year life with 
a residual value of £2,000. The company plans on using one out of the two most important 
methods of deprecation which are straight line & Written down value methods. The CEO 
wants to decide on which method based on a few calculations that he asks you to perform 
which are given below. Prepare the required calculations to help the CEO arrive at a final 
decision.
Required
(a) Prepare a table of depreciation and net book values over the five-years using straight-line 
depreciation.

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