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10. A. Suppose a manufacturing company purchases machinery for RO. 250,000 and the useful life of the machinery are 15 years and the residual value
10. A. Suppose a manufacturing company purchases machinery for RO. 250,000 and the useful life of the machinery are 15 years and the residual value of the machinery is RO. 25,000. Calculate depreciation under straight line method and find the book value. Provide journal entries b. ABC company purchases a printing press to print flyers for RO. 60,000 with a useful life of 200,000 units and a residual value of RO. 6000. It prints 4000 flyers. Calculate depreciation under unit of production method and find the book value. Provide journal entries c. On April 1, 2012, company X purchased a piece of equipment for RO. 500,000. This is expected to have 9 useful life years. The salvage value is RO. 50,000. Company X considers depreciation expenses for the nearest whole month. Calculate depreciation under double declining method and find the book value. Provide journal entries
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