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Noa Company purchased a machine on 1 January, 2014, for $180,000 and estimates its useful life and residual value at 10 yearsSHOW ALL WORK, NO WRITTEN WORK

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Answer #1
A. Depreciation
Purchase Value $          1,80,000.00
Residual Value $             30,000.00
Life 10
Method of Depreciation Straigh Line
Depreciation per year $             15,000.00
Dep till December 31, 2019 $             75,000.00
Remaining Life 5
Added life 6
New Remaining Life 11
Remaining Cost $          1,05,000.00
Residual Value $             30,000.00
Life 11
Method of Depreciation Straigh Line
Depreciation per year $                6,818.18
B. Interest
Interest Expense to be recognised for 3 months.
=5000*9% $                   450.00
C.Depreciaiton - Double Declining Balance
Purchase Value $          1,00,000.00
Residual Value $                1,500.00
Life 6
Method of Depreciation Double Declining
Depreciation 1 year $             33,333.33
Depreciation 2 year $             22,222.22
Total Depreciaition $             55,555.56
Book Value at 2 year end $             44,444.44
Sale Value $             42,000.00
Loss to be recognised $ 2,444.44
D. Interest Expense to be recognised
=133555*6% $ 8013.3
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