Question
Entity M purchased an equipment costing 15,000,000 to be used in its mining operations. The equipment has an estimated life of 6 years with no
Entity M purchased an equipment costing 15,000,000 to be used in its mining operations. The equipment has an estimated life of 6 years with no salvage value. After all the resource is removed expectedly over 5 years, the equipment will be of no use. The entity believes that the equipment 's benefit consumption depends on usage. The estimated recoverable output from the mine is 1,000,000 tons. During the first year, the entity produced 200,000 tons but there was shut down and no output in the second year. The entity used the straight -line method in the second year. In the third year the entity resumed operations and produced 300,000 tons.
How much is the depreciation for third year?
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