Agritech constructed an warehouse with the capacity storage of 25,000 MT of products at the cost of RM15,000,000. Over the period its accumulated expenditures are RM5,800,000 with a interest on actual basis were at RM370,000. It was estimated the useful life of warehouse will be 40 yrs with salvage value of RM1,250,000. Compute depreciation for 1st year using straight line.

Agritech constructed an warehouse with the capacity storage of 25,000 MT of products at the cost of RM15,000,000. Over the period its accumulated expenditures are RM5,800,000 with a interest on actual basis were at RM370,000. It was estimated the useful life of warehouse will be 40 yrs with salvage value of RM1,250,000. Compute depreciation for 1st year using straight line.

Name: Agritech constructed an warehouse with the capacity storage of25,000
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Description: Agritech constructed an warehouse with the capacity storage of25,000 MT of products at the cost of RM15,000,000. Over theperiod its accumulated expenditures are RM5, 800,000 with ainterest on actual basis were at RM370,000. It was estimated theusefu

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 6CE

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A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
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