DEPRECIATION PROBLEM #1 AA Company purchased a machine at a cost of P635,000 on March 10,2019. It was estimated that the machine would have a residual value of P35,000. Statistics relating to the machine over its estimated useful life were: Estimated useful life: Years 5 Service hours 60,000 Production output 150,000 Actual operations for 2019, 2020 and 2021: Service hours Unit produced 2019 14,000 34,000 2020 13,000 32,000 2021 10,000 25,000 REQUIRED: 1. Compute for the depreciation per service hour. 2. Compute for the depreciation per unit produced. 3. Compute for the depreciation expense for the year 2019 and 2020 using: a. Straight line method b. SYD (Sum of the years' digits) c. Service hours d. Units of production 4. Compute for the carrying amount of the machine as of December 31, 2019 and December 31, 2020 using: a. Straight line method b. SYD c. Service hours d. Units of production 5. For the following questions, use the straight line method of depreciation: a. Assuming that the machine was sold on October 1, 2020 for P510,000, i. How much is the carrying amount of the machine as of October 1, 2020? ii. How much is the gain/loss on sale? Specify your answer. b. Assuming that on January 1, 2021, the company decided to change the depreciation method to units of production: i. How much is the depreciation expense for 2021? ii. How much is the carrying amount of the machine as of December 31, 2021? C. Assuming that on March 10, 2021, the company discovered that the useful life of the machine was 10 years from the date of purchase: i. How much is the depreciation expense for 2021? ii. How much is the carrying amount of the machine as of December 31, 2021? d. Assuming that on March 10, 2021, the company incurred costs which extended the life of the machine for another 2 years: i. How much is the depreciation expense for 2021? ii. How much is the carrying amount of the machine as of December 31, 2021? e. Assuming that on March 10, 2021, the company incurred costs which extended the life of the machine to 6 years: i. How much is the depreciation expense for 2021? ii. How much is the carrying amount of the machine as of December 31, 2021