Assignment-chap 3 - Assignment 4 Due date: 15th August 2011...

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Assignment 4 Due date: 15 th August 2011 1. Ganesh construction company bought a machine for Rs. 200,000. The equipment was expected to be useful for six years, or 15,000 hours, with an estimated residual value of Rs. 20,000 at the end of that time. The equipment logged 2,000 hours in the first year. Compute the depreciation expense for the first year under: straight line method, double declining method and units-of production method. 2. Mehra Polymer Company bought a new machine. The company incurred the following expenditures in connection with the purchase. Purchase price ( net of discount Rs 60,000) Rs. 540,000 VAT Rs. 40,000 Freight Rs. 12,000 Transit insurance Rs. 3,000 Special casing for the machine Rs. 6,000 Cost of trial production runs Rs. 4,000 Compensation to the worker for injury while unloading the machine Rs. 2,000 3. Shyam rubber company bought a machine on July 1 2007 at a cost of Rs. 34,000. It has an estimated life of five years and an estimated residual value of Rs. 2,000. The
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This note was uploaded on 09/20/2011 for the course ACCT 301 taught by Professor Drmanoj during the Spring '11 term at Asian Institute of Management.

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Assignment-chap 3 - Assignment 4 Due date: 15th August 2011...

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