Question
Muscat LLC purchased a machine on 1 st January,2019 for OMR 250,000. The rate of depreciation is 20% p.a. under straight line method. Replacement Cost
Muscat LLC purchased a machine on 1st January,2019 for OMR 250,000. The rate of depreciation is 20% p.a. under straight line method. Replacement Cost of the machine on 31st December,2019 was OMR 350,000 and on 31st December, 2020 was OMR 500,000. The company wishes to follow Current Cost Accounting rather than the Historical Cost Accounting.
1- What is the amount of Depreciation Adjustment?
a-OMR 50,000
b-OMR 70,000
c-OMR 35,000
d-OMR 17,500
2-What is the amount of Additional Depreciation?
a-OMR 30,000
b-OMR 7,500
c-OMR 5,000
d-OMR 15,000
3- What is the amount of Back Log Depreciation?
a-OMR 60,000
b-OMR 15,000
c-OMR 30,000
d-OMR 50,000
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