The factory acquires another embroidery machine with a value of $ 32,000, which depreciates 10% annually,...
The factory acquires another embroidery machine with a value of $ 32,000, which depreciates 10% annually, with a salvage value of $ 10,000.00 how long does the machine have? Explain the formulas you use
Homework Answers
| Purchase cost of Machine = $ 32000 | |||||||||
| Depreciation rate = 10% | |||||||||
| Salvage Value = $10000 | |||||||||
| In $ | |||||||||
| Year | Opening WDV | Depreciation@10% | Closing WDV | ||||||
| 1 | 32000.00 | 3200.00 | 28800.00 | ||||||
| 2 | 28800.00 | 2880.00 | 25920.00 | ||||||
| 3 | 25920.00 | 2592.00 | 23328.00 | ||||||
| 4 | 23328.00 | 2332.80 | 20995.20 | ||||||
| 5 | 20995.20 | 2099.52 | 18895.68 | ||||||
| 6 | 18895.68 | 1889.57 | 17006.11 | ||||||
| 7 | 17006.11 | 1700.61 | 15305.50 | ||||||
| 8 | 15305.50 | 1530.55 | 13774.95 | ||||||
| 9 | 13774.95 | 1377.50 | 12397.46 | ||||||
| 10 | 12397.46 | 1239.75 | 11157.71 | ||||||
| 11 | 11157.71 | 1115.77 | 10041.94 | ||||||
| Since After 11 Years the Closing WDV of the Machine is $10000, hence the useful life of machine is 11 Years. | |||||||||
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