A machine was purchased for Sh. 450,000 on 1st January, 1991. The erection and installation work...
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A machine was purchased for Sh. 450,000 on 1st January, 1991. The erection and installation work costs was Sh. 70,000. This was replaced by a new one on 31st Dec, 2010. If the Scrap Value was estimated as Sh. 150,000, calculate the rate of depreciation and depreciation fund on 15th June, 2000 using the straight line depreciation method. (ii) If after 12 years of running, some assemblies are replaced and the replacement cost is Sh. [6 marks) 150,000, what will be the new rate of depreciation? A machine was purchased for Sh. 450,000 on 1st January, 1991. The erection and installation work costs was Sh. 70,000. This was replaced by a new one on 31st Dec, 2010. If the Scrap Value was estimated as Sh. 150,000, calculate the rate of depreciation and depreciation fund on 15th June, 2000 using the straight line depreciation method. (ii) If after 12 years of running, some assemblies are replaced and the replacement cost is Sh. [6 marks) 150,000, what will be the new rate of depreciation?
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Answer rating: 100% (QA)
SOLUTION To calculate the rate of depreciation and depreciation fund on 15th June 2000 we need to use the straight line depreciation method which assumes that the asset loses its value at a constant r... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
Posted Date:
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