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Galfar Engineering & Contracting SAOG purchased a machine for OMR 400,000. The Company expects the service life of the machine to be 5 years. During

Galfar Engineering & Contracting SAOG purchased a machine for OMR 400,000. The Company expects the service life of the machine to be 5 years. During that time, it is expected that the machines useful life will be 200,000 hours. The anticipated salvage value is OMR 30,000. The machine is disposed of after five years of use. Actual hours used during the five years of the machines life was Year-1: 50,000 hours; Year-2: 40,000 hours; Year-3: 35,000 hours. Calculate the book value of machine at the end of third year? Use unit-of-activity depreciation method:

a.

OMR 85,500

b.

OMR 231,250

c.

OMR 92,500

d.

OMR 168,750

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