Question
A company has procured a tangible asset. The expected life of the operating asset is five years. Estimated sales value at the expiration of the
A company has procured a tangible asset. The expected life of the operating asset is five years. Estimated sales value at the expiration of the service life is NOK 400.000 without VAT. Assume that the business uses reducing balance (method of)depreciation. Thereducing balance depreciation rate is set to 20% and the reducing balance (method of)depreciation in Year 3 was NOK 204.800.
What was the acquisition price/cost without VAT?
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
14th Edition
1119707110, 978-1119707110
