00:02
So we told that we purchased a generator and it cost us 20 ,000, right? and then we also bought it.
00:13
Actually, this was a motor, right, that we purchased for 20 ,000.
00:23
And then the generator was 8 ,000, right? and we are also told that the assembly of the generator costed as 5 ,000, right? we are told that maintenance costs us 1 ,200 and that the cost of running is 5 per hour, right? now the total hours that we operate is going to be 1 ,600 hours, right? and the term is for 10 years and the residual value is 1000.
01:12
That's just the salvage value, right? so now, first of all, what i need to determine is which figures i'm going to use.
01:19
So for the cost of an asset, you always include the cost that you incurred when you purchase the asset.
01:24
So this is included, right? but now we purchase a generator specifically for the motor...