PROBLEM 3: EXERCISES 1. Mi-is Co. acquired a piece of factory equipment on January 1, useful life of 4 years and a residual value of P100,000. Requirements: Prepare the (1) depreciation table and (2) journal entries on Dec. 31, 20x1 and Dec. 31, 20x2 under each of the following depreciation methods: a. Straight line method b. Sum-of-the-years' digits method c Double declining balance method 2. Use the information in the preceding problem, except that the machine was estimated to have a total service life of 12,000 hours and a total productive capacity of 720,000 units of a product. Information on actual usage and production in the first two years is as follows: Year Manufacturing hours Units produced 20x1 3,600 240,000 20x2 3,000 200,000 Requirement: Prepare the journal entries on Dec. 31, 20x1 and Dec. 31, 20x2 using the units-of-production method wherein the depreciation rate is determined: a. based on input; and b. based on output