a) What will be the book value of the machine after 5 years b) The accounts department informed you that book value of the machine after 5 years will be OMR 4,000. Do you agree with the value specified by accounting department? c) Is depreciation good or bad for the business? Discuss with reasons
a) What will be the book value of the machine after 5 years b) The accounts department informed you that book value of the machine after 5 years will be OMR 4,000. Do you agree with the value specified by accounting department? c) Is depreciation good or bad for the business? Discuss with reasons
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...
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Q10: Gulf Mushroom Products Company purchased a machine for OMR 10,000 for which depreciation will be measured as per diminishing balance method (WDV). Depreciation is calculated at 8% per annum for first 3 years and after that due to change in the accounting standards the rate of depreciation is changed to 10% per annum for next 2 years.
a) What will be the book value of the machine after 5 years
b) The accounts department informed you that book value of the machine after 5 years will be OMR 4,000. Do you agree with the value specified by accounting department?
c) Is depreciation good or bad for the business? Discuss with reasons
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