Question
Dolo LLC provides following information. Consider the following information about a newly purchased Property plant and equipment Purchase price of the equipment is OMR750,000 and
Dolo LLC provides following information. Consider the following information about a newly purchased Property plant and equipment
Purchase price of the equipment is OMR750,000 and the residual value of the equipment is OMR. 50,000. The useful life of the equipment is 10 years with a total production capacity of 5 million units. the depreciation rate applicable for the equipment under straight line method is 15%.
The production details by using the equipment are given below:
Production during the year 1 and 2 = 50,000 units each year
Production during the year 3 and 4 = 150,000 units each year
Production during the year 5 and 6 = 125000 units each year
What is the accumulated depreciation at the end of 5 years based on production units method?
.
a) OMR 70,000
b) OMR 73,500
c) None of them
d) OMR 350,000
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