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Q6-(8 Marks: c1:8): Al Riffa Company purchased a new machine for its assembly process on October 1, 2021. The cost of th
Posted: Wed Jul 06, 2022 6:25 pm
by answerhappygod
- Q6 8 Marks C1 8 Al Riffa Company Purchased A New Machine For Its Assembly Process On October 1 2021 The Cost Of Th 1 (47.37 KiB) Viewed 11 times
Q6-(8 Marks: c1:8): Al Riffa
Company purchased a new machine for its assembly process on October 1, 2021. The cost of this machine was BD65,000. The
company estimated that the machine would have a residual value of BD10,000 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 14,000 hours. Year-end is December 31. Required: Based on your critical analyse compute the depreciation expense under the following methods. Each of the following should be considered unrelated. a. Straight-line depreciation for 2021. b. Activity method for 2021, assuming that machine usage was 500 hours. c. Sum-of-the-years'-digits for 2022. d. Double-declining-balance for 2022. (2 Marks) (2 Marks) (2 Marks) (2 Marks)