Question
Papon PLC has 3 machines. The company follows different depreciation methods for each of the machine. Information regarding the 3 machines is given below: Machine
Papon PLC has 3 machines. The company follows different depreciation methods for each of the machine. Information regarding the 3 machines is given below:
Machine Model … … … … … N280MDU76 … … … … … N125XW96 … … … … .. N327TXP83
Depreciation Method … … Units of Activity … … … … Straight Line … … … … Declining balance method
Purchase date … … … … … July 1,2020 … … … … … .. January 1,2020 … … … . October 1,2020
Cost ($) … … … … … … … … 190000 … … … … … … … 150000 … … … … … … … 250000
Salvage Value ($) … … … … 40000 … … … … … … … … 10000 … … … … … … … 60000
Useful Life (Years) … … … … 6 … … … … … … … … … … 4 … … … … … … … … … 5
N280MDU76 is expected to be used for 26000 hours. Actual hours used in the year 2020 and 2021 were 5500 hours and 10500 hours respectively. Complete the depreciation schedules of each of the machines for 2020 and 2021.
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