A co purchased a machine for $50000 on 1 Jan 2001.It was judged to have a five year life with a residual life of $5000.On 1 Jan 2003 $15000 was spent on an upgrade to the machine.Its extended its remaining useful life to 5 years with the same residual value.During 2003 the market for the product declined and the machine was sold on 1 Jan 2004 for $7000.
What was the loss on disposal???
When we calculate depreciation how do we get 45000*2/5.How do we get *2???
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10y ago#1"How do we get *2" How many years are there between 1 January, 2001 and 1 January, 2003?
$31,600 loss on disposal?
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