1. What would be the original cost of the fax machine, computer, utility vehicle, and photocopier which will be reflected on the balance sheet?

2. For the computer, determine the depreciation from year 1 to 8.

3. For the car, how much is the depreciation expense on the first year to fourth year?

4. For the photocopier, what would be the depreciation expense for year 6 assuming that 375,000 copies were made during the year?

5. For the photocopier, what would be the depreciation expense for year 5 assuming that 150,000 copies were made during the year?

6. Which of the four equipment would have the largest fraction of its value recovered by the end of the third year?

Meteor Garden Apartments, Inc. (MeGA, Inc.) is a corporation established on July 1, 2000. Around that time, the company bought several equipment for use in its main office. A computer, a fax machine, and a photocopier machine were purchased from MS Appliance Center. The computerworth P45,000 is estimated to have a useful life of eight years, after which it will have no resale value. On the other hand, the fax machine worth P7,500, is expected to last for five years and will have a salvage value of P1,000 after this. Lastly, the photocopier machine was bought for P12,000. This machine is estimated to have a service life of ten years and a residual value of P2,500. According to the salesman, this brand of photocopier machine can produce 1,000,000 copies throughout its ten-year life. The three pieces of equipment bought from MS Appliance Center were delivered right at the doorstep of MeGA, Inc. for an additional charge of P1,000. The delivery charges is to be divided equally among the three. Meanwhile, the photocopier machine had to be installed by a technician from the appliance center since it is not compatible with the 220V setup. This carries a charge of P500 only but MeGA, Inc. was forced to shell out P1,200 more during the installation because the technician had to be hospitalized after a mild electrocution accident. A utility vehicle was also purchased from Dahon Motors Phils., Inc. for P635.000. Aside from this amount the company was also required to pay for government duties and taxes totaling P30.000. After its service life of seven years, it is expected to be resold for as much as P350,000. Since there were no set policy on depreciation methods, the equipment and vehicle are out P1,200 more during the installation because the technician had to be hospitalized after a mild electrocution accident. A utility vehicle was also purchased from Dahon Motors Phils., Inc. for P635,000. Aside from this amount, the company was also required to pay for government duties and taxes totaling P30,000. After its service life of seven years, it is expected to be resold for as much as P350,000. Since there were no set policy on depreciation methods, the equipment and vehicle are being depreciated according to different methods: Computer - Sum-of-the-Years Digits Method Fax Machine -- Straight-Line Method Photocopier Machine - Units-of-Production Method Utility Vehicle -- 150% Declining Balance Method Note: Take note/screenshot of the information provided here, this will not be shown again. This will be the basis for your answers in the succeeding questions. Round off all answers to 2 decimal places