I have bought some furniture for the price of 40 000 euros. I establish the useful life
Question:
I have bought some furniture for the price of 40 000 euros. I establish the useful life in 5 years. You are expected to determine/devise (invent) yourself any further relevant data necessary in order to proceed with the calculations. Yes, that’ s exactly this: I am just giving you the price paid and the expected useful life. If you think you need additional data, then devise them yourself. I would accept any decision, as long as your calculations and explanations make sense. Once you have done it, then prepare (in an Excel format, please) a depreciation plan using all the three main methods you have studied: straight line, units of activity, declining balance. Please prepare a table and indicate what the various numbers represent. Now you are requested to :
Prepare a depreciation plan (you can use the template from the book or anything equivalent) assuming the car is bought on the 1st January 2021, providing some explanations regarding the meaning of the various steps