MRS Ltd. acquired new equipment for purchase price Tk 3500000 at the beginning of the accounting...

Transcribed Image Text:

MRS Ltd. acquired new equipment for purchase price Tk 3500000 at the beginning of the accounting year. Carrying cost was Tk.50000, testing cost was Tk. 15000 and installation cost was Tk 60000. The equipment has an estimated economic life of 8 years but class life 3 years with estimated salvage value of Tk 1000000. Requirements: Determine the annual depreciation expense and prepare depreciation schedule under: (i) straight-line method (ii) Sum of years' digit method & (iii) Reducing balance method. MRS Ltd. acquired new equipment for purchase price Tk 3500000 at the beginning of the accounting year. Carrying cost was Tk.50000, testing cost was Tk. 15000 and installation cost was Tk 60000. The equipment has an estimated economic life of 8 years but class life 3 years with estimated salvage value of Tk 1000000. Requirements: Determine the annual depreciation expense and prepare depreciation schedule under: (i) straight-line method (ii) Sum of years' digit method & (iii) Reducing balance method.

Answer rating: 100% (QA)

Sure I can help you with that Lets calculate the annual depreciation expense and prepare the depreci... View the full answer