5 (a) Machine costing OMR 70,000 was purchased on March 1, 2009. The estimated useful life was 8 years and the salvage value was OMR 6,000. On April 30, 2013 the company decided to sale this machine, because it was no longer required. Cash of OMR 50.000 was received on the sale of this machine. The company uses straight line method for charging depreciation expense, and the closing day of the financial accounting year is December 31, of each year. Required: _(6 Marks) 1. Calculate the depreciation expense up-to April 30, 2013. 2. Pass adjusting entries to record depreciation on April 30, 2013 5 (b) "Depreciation is the process of allocating the coast of a plant asset to expense in the accounting periods benefiting from its use". In the light of above definition what may be the possible elements effecting depreciation. Also discuss which method gives highest amount of depreciation in the first year? Why? (4 Marks) Answer 5 (b): Answer 5 (a): (1) Computation of Depreciation Expense Using Straight Line Method Year Calculation Depreciation Expense | Accumulated Depreciation General Journal Date Particulars Debit OMR Credit OMR