Valix Finacc vol 1 Problem 17-13

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 17 Problem 17-13

Main machine (7,500,000 / 10)                                                                         750,000

First component – from January 1 to April 1, 2008 (1,200,000 / 6 x 3/12)                       50,000

Second component – from April 1 to December 31, 2009

            (2,000,000 – 400,000 / 4 x 9/12)                                                             300,000

Total depreciation for 2008                                                                                      1,100,000            

The second component is depreciated over the remaining life of the main machine. The original life is 10 years and 6 years already expired. Thus, the remaining life is 4 years.