Question: plz explain b, c, d properly #3 - 12 marks The Northwood Clinic purchased a new surgical laser for $ 75,000. The estimated residual value
#3 - 12 marks The Northwood Clinic purchased a new surgical laser for $ 75,000. The estimated residual value is $7,500. The laser has a useful life of four years and the clinic expects to use it 10,000 hours. It was used 1,600 hours in year 1; 2,100 hours in year 2; 3,400 hours in year 3; 2,900 hours in year 4. a Required: a) Calculate the annual depreciation for each of the four years under each of the following methods i) straight-line units-of-production b) If you were the administrator of the clinic, which method would you deem as most appropriate? Justify your answer. I c) Which method would result in the lowest reported profit in the first year? Which method would result in the lowest total reported profit over the four-year period? d) Which method would result in the lowest cash flow in Year 1? Over the life of the asset
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