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Question - Depreciation method:
Nevertire Ltd purchase a delivery van costing $52000 net of GST. It is expected to have a residual value of $12000 at end of its useful life of 4 years or 200,000 kilometres.
A. Assume the van was purchase on 2 July 2015 and that the accounting period ends on 30 June. Calculate the depreciation expense for the year 2015-2016 using each of the following depreciation methods:
1. Straight-line,
2. Diminishing balance,
3. Units production (assume the van was driven 78000 kilometers during the financial year).
B. Assume the van was purchase on 1 October 2015 and that the accounting period ends on 30 June. Calculate the depreciation expense for the year 2015-2016 using each of the following depreciation methods:
3. Units production (assume the van was driven 60000 kilometers during the financial year).
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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