Question: (a)The terms depreciation and amortization are sometimes used interchangeably. Do you agree or disagree? Discuss and explain at least three common assets used in the

(a)The terms depreciation and amortization are sometimes used interchangeably. Do you agree or disagree? Discuss and explain at least three common assets used in the company as items for income generation but are excluded in the depreciation [5 marks]

(b)A machine costs TZS300,000 with a salvage value of TZS 50,000 at the end its life of 10 years. If money wroth 6% annually use sinking fund method and determine the depreciation at the 6 years and discuss the circumstances which drive the company to use this method in computing depreciation of assets [4 marks]

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