San Juan Hospital acquires a machine for carrying out magnetic resonance exams, which has a capacity of
Question:
San Juan Hospital acquires a machine for carrying out magnetic resonance exams, which has a capacity of 380,000 tests; The cost of the machine is $180,000, with a useful life of 4 years and with a projection of annual tests in the following amounts: First year 145,000 tests Second year 105,000 tests Third year 73,500 tests Fourth year 56,500 tests Consider a residual value of $20,000 at end of the fourth year. After reading and analyzing the exercise, you must apply the three different depreciation methods (straight-line depreciation method, decreasing depreciation method and depreciation method by units produced). After having developed each of the depreciation methods, answer the following questions: Which depreciation method would be best for you to use, analyzing the expense that depreciation generates? What do you base your answer on?
Business research methods
ISBN: 978-1439080672
8th Edition
Authors: William G Zikmund, Barry J. Babin, Jon C. Carr, Mitch Griff