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AGRO Technologies Sdn. Bhd. purchased equipment for herbal medicine production on April 5th, 2018. The machine cost was RM84,500 with an expected life of 10
AGRO Technologies Sdn. Bhd. purchased equipment for herbal medicine production on April 5th, 2018. The machine cost was RM84,500 with an expected life of 10 years, under proper care. The equipment was transported and installed into the company on April 20in,2018, and was then used for production on May 1st,2018. On May 4th, RM2,500 was spent on the equipment for lubricants. On May 25th,2018, the company received an invoice for the cost of the equipment, plus transportation and installation cost of RM1,500. At the end of its life, the machine is expected to be salvaged for RM6,000. Throughout the life of its life, the equipment is expected to produce 2,000,000 units of products, and in the financial year 2018 , it produced 55,000 units. Calculate the depreciation expenses of the machine for financial accounting year as of 31st December 2018 using the following methods: a. Straight Line Method b. Unit of Production Method c. Double Declining Balance Method d. Sum of the Year Digit Method
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