Tran toy store - explain how u would treat these items in...

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Tran toy’s store purchased a new computer system on 1 april 2005. The following info related to this computer: Purchase price: $4920 Maintenance contract: $120 per year Insurance: $50 per year Installation: $80 The owner estimates that she will use the computer in the business for 3 years and then sell it for $1100 a. calculate the total cost of the asset that should be considered for depreciation b. in your answer to part a, did u exclude any items from the list of payments stated above? If so,
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Unformatted text preview: explain how u would treat these items in acc reports of the business. c. using the straight line method of depreciation, calculate the depreciation expenses per annum d. express the depreciation per annum as a percentage of the cost of asset e. prepare the adjusting entry for depreciation in the general journal on 31 march 2006...
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This note was uploaded on 02/07/2012 for the course ECONOMICS 102 taught by Professor Arshurrov during the Spring '11 term at University of Texas at Dallas, Richardson.

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