Q. A firm of manufactures, whose books are closed on31th Dec, purchased Machinery for $ 50,000 on 15 Jan 2014, Additional Machinery was acquired for $ 10,000 on 1st July 2015 and for $ 16,466 on 14th April 2017. certain machinery, which originally cost $ 10,000 in 2014 was sold for $ 5,000 on 30th June 2016.
Give the machinery account for five years written off depreciation at 10 percen on th written down value.
Answers: Loss $ 2,290 Balance of Machinery Account $ 45,000.
sirajbaloch1988:
Kindly some one helps me out from this question.
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According to the Bureau of Labor Statistics consumer price index, prices in 2017 are 1,995.04% higher than average prices throughout 1820. The dollar experienced an average inflation rate of 1.56% per year during this period.
In other words, $10,000 in 1820 is equivalent in purchasing power to $209,504.27 in 2017, a difference of $199,504.27 over 197 years.
The 1820 inflation rate was -7.87%. The inflation rate in 2017 was 2.13%. The 2017 inflation rate is higher compared to the average inflation rate of 1.34% per year between 2017 and 2019.
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