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astraxan [27]
1 year ago
10

daily enterprises is purchasing a $10 million machine. it will cost $50,000 to transport and install the machine. the machine ha

s a depreciable life of five years and will have no salvage value. if daily enterprises uses straight-line depreciation, what are the depreciation expenses associated with this machine?
Business
1 answer:
kupik [55]1 year ago
7 0

The machine's annual depreciation costs are calculated by dividing the machine's purchase price by its installation cost over a 5-year period:Depreciation costs equal (10,700,000 + 56,000) / Number of Years divided by five, or $2,151,200.

The value of a fixed asset less the total accumulated depreciation that has been recorded against it is its depreciated cost. The total amount of capital that is "used up" in a certain time frame, such as a fiscal year, is referred to as the depreciated cost in a broader economic sense. The accuracy with which depreciation is calculated allows one to assess patterns in a company's capital expenditures and how aggressive its accounting practices are. The terms "salvage value," "net book value," and "adjusted cost base" are all synonyms for "depreciated cost." Businesses and private individuals can calculate an asset's useful worth using the depreciated cost technique of asset appraisal.

learn more about depreciation costs here:

brainly.com/question/24297521

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Based on the given information, what will be the working capital of the company?
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Answer:

$37,000

Explanation:

Working capital indicates the difference between a company's current assets and its current liabilities.

Current assets include such as cash at hand, bank balances, cash equivalents, and inventories. Current liabilities are accounts payable, bills, and short term debts.

in this case,

Current assets include

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Cash at Bank    $ 5,000

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Total current assets <u>$60,000</u>

current liabilities

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Total current liabilities  <u>   $23,000</u>

Working capital

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