Question
Maxiflow LLC provides following information from their books of accounts. The company bought a machine on 1 st January 2014 for OMR960,000 with installation charges
Maxiflow LLC provides following information from their books of accounts. The company bought a machine on 1st January 2014 for OMR960,000 with installation charges of OMR 40000 and a residual value of 80000 after a useful life of 12 years. the depreciation rate applicable for the machine under diminishing balance method is 12%. The total production units of the machine are estimated to be 2.5 million units.The number of units produced during each year are as follows:
Production during the year 2014 was 40,000 units.
Production during the year 2015 was 50,000 units.
Production during the year 2016 was 60,000 units.
Production during the year 2017 was 50,000 units.
Production during the year 2018 was 70,000 units.
Production during the year 2019 was 60,000 units.
Production during the year 2020 was 60,000 units.
What is the accumulated depreciation of the machine as per production units method by the end of year 2018?
a) OMR 143,520
b) OMR 99,360
c) OMR 383,333
d) None of them
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