Answered step by step
Verified Expert Solution
Question
1 Approved Answer
INSTRUCTIONS: . Answer question ONE (compulsory) and any other TWO questions QUESTION ONE (a) Tetra Inc. purchased a new robotic drill for its assembly line
INSTRUCTIONS: . Answer question ONE (compulsory) and any other TWO questions QUESTION ONE (a) Tetra Inc. purchased a new robotic drill for its assembly line operation. The total cost of the asset was Ksh 125,000, including shipping, installation, and testing. The asset is expected to have a useful life of five years and a residual value of Ksh 10,000. The total service life, expressed in hours of operation, is 10,000 hours. The total output the machine is expected to produce over its life is 1,000,000 units. The asset was purchased on January 1, 2015, and it is now December 31, 2016. In 2016, the asset was used for 2,150 hours and it produced 207,000 units. Required: Calculate the 2016 depreciation charge using the following methods: i. Straight-line. ii. Activity, based on units of input. iii. Activity, based on units of production. (3 Marl (3 Mark (3 Ma
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started