(a) A business buys a machine for N$20 000. Over aperiod of 8 years, the value of a machine depreciatesto N$0. Using straight line method, what is thevalue of the machine after 4 years?(b) Two friends in the construction business decidedto buy cars for their businesses. Mr. Shikongobought a car costing N$450 000. It is estimated thatat the end of 5 years, the car will be worth N$400000. Mr. Smith bought exactly the same car butdecided to depreciate it at 2% each year. Calculatethe value of the car to Mr. Shikongo and Mr. Smithat the end of the 4th year.

Name: (a) A business buys a machine for N$20 000. Over aperiod of 8 years,
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Description: (a) A business buys a machine for N$20 000. Over aperiod of 8 years, the value of a machine depreciatesto N$0. Using straight line method, what is thevalue of the machine after 4 years?(b) Two friends in the construction business decidedto buy cars

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Business

Accounting

(a) A business buys a machine for N$20 000. Over a period of 8 years, the value of a machine depreciates to N$0. Using straight line method, what is the value of the machine after 4 years?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 3BCRQ

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