Question

A business has just bought a machine for N$ 8,000 it will be kept in use...

A business has just bought a machine for N$ 8,000 it will be kept in use for four (4) years, and then will be disposed of for an estimated amount of N$500.00 The business management asks for a comparison of the amounts changed as depreciation using both methods

  1. Straight line methods                                                                                                           
  2. Diminishing balance methods, using a depreciation rate of 50%          

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