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.