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Exercise 2) Depreciation:The following data for a machinery is available: Purchase price (incl. 20%VAT) 360 000 EUR Salvage value (excl VAT) 10 000 EUR useful life 7 years (=estimated service life) production capacity 580 000 hours 1st year: production (2006) 120 000 hours 2nd year: production (2007) 160 000 hours 3rd year: production (2008) 130 000 hours 4th year: production (2009) 80 000 hours 5th year: production (2010) 50 000 hours 6th year: production (2011) 40 000 hours 7th year: production (2012) 30 000 hours a) Calculate the straight-line depreciation. (straight-line method) b) Calculate the depreciation based on the activity method. c) What other depreciation methods do you know? d) Calculate the depreciation for 2006 and the book value (31.12.2006) in accordance with the Austrian (taxation) regulations (straight-line) if the machinery has been purchased at 30 May 2006. e) Calculate the depreciation for 2006 and the book value (31.12.2006) in accordance with the Austrian (taxation) regulations (straight line) if the machinery has been purchased at 5 August 2006.
part-11. describe the industry and explain the general pattern of change of the particular market model.2. hypothesize
q1. the following table shows data for the simple production function used. capital costs this firm 20 per unit and
The government is considering a policy to reduce air pollution by restricting the use of "dirty" fuels by factories. In deciding whether to implement the policy, how, if at all, should the likely effects of the policy on real GDP be taken into acc..
Discuss the potential risks of using Web 2.0 tools. Provide several examples. What are the benefits of "build-to order" to buyers and sellers? Are there any disadvantages?
The CEO and COO in the United States hope to use your writing and experience to convince other workers of value of what Acme is doing abroad.
discuss your most recent decision to purchase a major item entertainment center automobile home etc.. in what way did
Price elasticity of demand depends on various factors. Explain each factor with the help of an example and how how producers equilibrium is achieved with isoquants and isocost curves.
Describe the method of contingent valuation for measuring the economic impact of crime. What are the advantages and disadvantages of this method relative to trying to measure the cost of crime directly
In 1914, Ford Motor Company doubled its wage to $5 per day, a rate that was considerably above the average wage at that time.In terms of efficiency wages, explain why Ford would have had an incentive to do this.
Find out the equilibrium price and quantity and illustrate with a graph. The government imposes a tax of $5.00. Find the new equilibrium price and quantity. Determine the total tax revenue earned by the government
1. if the economy is to have significant built-in stability then when real gdp increases the tax revenues shoulda. fall
why does the loss in total economic surplus directly experienced by participants in the market for a good that is taxed
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