Question

Machine A costs $64,000 and depreciates on a 10-year schedule. If the Net Fixed Asset value...

Machine A costs $64,000 and depreciates on a 10-year schedule. If the Net Fixed Asset value of Machine A in year 8 will be the same as that of Machine B in year 9 depreciating on a 15-year schedule, what does Machine B cost (i.e., purchase cost)?

Multiple Choice

  • $14,000

  • $32,000

  • $48,000

  • $85,333

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Answer #1

Value of machine B at year 9 = $ 12,800.00 Depreciation of machine B per year = $2,133.33 Purchase cost of machine B = $ 32,0

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