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Question - Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $128,000. Over its 4-year useful life, the bus is expected to be driven 213,750 miles. Salvage value is expected to be $8,300.
(a) Compute the depreciation cost per unit.
(b) Compose ac depreciation schedule assuming actual mileage was: 2017, 51,200; 2018, 66,560; 2019, 52,480; and 2020, 34,560.
Determine the effect of the change and prepare the appropriate journal entry to record ABC Co.'s Income tax expense for 2011.
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Zeppo Ltd manufactures a range of products from one basic material. In September, the opening stock of the material was 650 kilos and. at the end of the month.
How did the example illustrate the time value of money concept? How was the Net Present Value concept illustrated? How was the payback period determined?
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