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hals v repare aders se the ENE Industries purchased an equipment on 15 July 2019 for a total cost of 500.000. The owner is trying
hals v repare aders se the ENE Industries purchased an equipment on 15 July 2019 for a total cost of 500.000. The owner is trying to decide which depreciation method to use for this equipment. The equipment is expected to last for 6 years and have a residual value of 51.000 at the end of its useful life Estimated total production is 600.000 units in the first two years production is expected to be 100.000 units in year 1 and 50,000 units in year 2. For the Diminishing Balance method use 25w as the rate. Pai : . Ow Pro 5. Re 5. Pai 7. Pui Required: (a) What would be the written down value of the equipment at 30th June 2021. for each depreciation metho (3 marks (b) Which depreciation method would give the lowest profit in the first year of the equipments use? Explain your ans wer Bus AODOU (2 marks
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