A chip placer has been purchased by SemiConductorCo for $4500 five years after the original owner,...

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A chip placer has been purchased by SemiConductorCo for $4500 five years after the original owner, GermaniumCo, purchase it new for $20,000. The purchase price was the book value of the device at the time of purchase. (a) If the depreciation was straight line, what was the charge per year? (3 marks) (b) Use Excel to plot a graph of the Book Value Vs Time for five years in part (a). (4 marks) (c) If the depreciation was declining balance, what was the depreciation rate? (3 marks) A chip placer has been purchased by SemiConductorCo for $4500 five years after the original owner, GermaniumCo, purchase it new for $20,000. The purchase price was the book value of the device at the time of purchase. (a) If the depreciation was straight line, what was the charge per year? (3 marks) (b) Use Excel to plot a graph of the Book Value Vs Time for five years in part (a). (4 marks) (c) If the depreciation was declining balance, what was the depreciation rate? (3 marks)

Answer rating: 100% (QA)

Answer Explanation Part a iStraightline depreciation per year can be calculated as follows Purchase ... View the full answer