COMPREHENSIVE QUESTION (CLASS DISCUSSION) FOR DEPRECIATION Zahid Company acquired machinery on January 1, 2017 with an amount AED64,000. The useful life of the machinery is expected to be 5 years. The salvage value at the end of the life of the machinery is expected to be AED4,000. The machinery can produce maximum 90,000 units during its useful life. Required: - a) Calculate depreciation expense for the year 2017, 2018, 2019, 2020 and 2021 by using straight-line method. Also calculate asset's book value at the end of these years. b) Calculate depreciation expense for the year 2017, 2018, 2019, 2020 and 2021 by using units of production method if following number of units were produced. Also calculate asset's book value at the end of these years. 2017: 28,000 units produced 2018: 25,000 units produced 2019: 18,000 units produced 2020: 15,000 units produced 2021: 4,000 units produced c) Calculate depreciation expense for the year 2017, 2018, 2019, 2020 and 2021 by using double-declining balance method. Also calculate asset's book value at the end of these years. d) Show the journal entry to show depreciation expense at the end of the year 2017, and 2018 using i. Straight-line method ii. Unis-of-production method iii. Double declining balance method. e) Show the presentation of the asset in the balance sheet for the year 2017, and 2018 using i. Straight-line method ii. Unis-of-production method ii. Double declining balance method