As of October 1, 2549 MARUAI Limited bought 960,000 building cost estimates of remaining useful life of 20 years. It’ s salvage value was 160,000 baht and depreciated on a straight line. On January 1, 2556, the Company purchased 5 cars cost about 1,500,000 baht remaining useful life of 5 years. It’ s salvage value was 600,000 baht. If in 2556 the company had net sales of 1.8 million baht, with the gross profit margin of 45%. Have you analyzed that
1.The company should be depreciated cars in any way to make the company more profitable.
2. Calculate depreciation by the way you proposed.
As of October 1, 2549 MARUAI Limited bought 960,000 building cost estimates of remaining useful life of 20 years. It’ s salvage value was 160,000 baht and depreciated on a straight line. On January 1, 2556, the Company purchased 5 cars cost about 1,500,000 baht remaining useful life of 5 years. It’ s salvage value was 600,000 baht. If in 2556 the company had net sales of 1.8 million baht, with the gross profit margin of 45%. Have you analyzed that
1.The company should be depreciated cars in any way to make the company more profitable.
2. Calculate depreciation by the way you proposed.
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