[4 marks] d) The AC Milan (PTY) Limited is contemplating to acquire equipment for COVID- 19...

 

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[4 marks] d) The AC Milan (PTY) Limited is contemplating to acquire equipment for COVID- 19 monitoring for its employees. The new equipment will cost R800,000. The estimated residual value is R50,000. The equipment will have a useful life of five years and the company expects to use it 10,000 hours over the five-year economic life. If you were the administrator of the health and safety in the company, which method of depreciation would you deem as most appropriate? Justify your answer. [4 marks] [4 marks] d) The AC Milan (PTY) Limited is contemplating to acquire equipment for COVID- 19 monitoring for its employees. The new equipment will cost R800,000. The estimated residual value is R50,000. The equipment will have a useful life of five years and the company expects to use it 10,000 hours over the five-year economic life. If you were the administrator of the health and safety in the company, which method of depreciation would you deem as most appropriate? Justify your answer. [4 marks]

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Company is acquiring a new equipment with useful life expected of 10000ho... View the full answer