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DEPRECIATION PROBLEM 5. A certain machine cost P43,013 and has a life of 10 years and salvage value of P5,623. The production outputs and the

DEPRECIATION

PROBLEM 5.

A certain machine cost P43,013 and has a life of 10 years and salvage value of P5,623. The production outputs and the working hours of this machine per year are as follows: 1st year are 1,754 units and 12,461 hours; 2nd year are 2,203 units and 15,913 hours; 3rd year are 3,151 units and 19,632 hours and 4th year are 3,681 units and 21,946 hours. The capacity of the machine is 50,000 units and 200,000 hours. Assume that the units produced are of uniform quality. Determine the following:

a. Depreciation charged on the 2nd year using both SOM and WHM.

b. Book value after 4 years using SOM.

c. Book value after 3 years using WHM.

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