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ABC Ltd buys a factory machine at Sh. 10,000,000 including the purchase price and all other capitalisable costs like installation, freight, taxes, commissions and borrowing
ABC Ltd buys a factory machine at Sh. 10,000,000 including the purchase price and all other capitalisable costs like installation, freight, taxes, commissions and borrowing costs. The most conservative estimates indicate that the plant facility would be useful for 5 years a time over which it is expected to churn out an output equivalent to 100,000,000 units. At the end of the useful life, it is expected to have a salvage value of Sh. 2,000,000 after considering all incidental costs of disposal a) Prepare depreciation schedules based on as many methods as you can assuming that the output from the machine was 25m, 15m 20m 30m and 10m for years 1,2,3,4 and 5 respectively
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