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Problem A Alcantara acquired an equipment on June 25, 20x1 for P1,000,000. The equipment is estimated to have a useful life of 5 years
Problem A Alcantara acquired an equipment on June 25, 20x1 for P1,000,000. The equipment is estimated to have a useful life of 5 years and residual value of P50,000. Required: Prepare the depreciation table from 20x120x6 using the following depreciation methods. (Present the computation of annual depreciation, SYD rate and double declining rate. 1) Straight line method 2) Sum-of-the-years' digits method 3) Double declining balance method 1) Straight-line Method Date Depreciation Accumulated Depreciation Carrying Amount Date Year 20x1 20x2 20x3 Depreciation 20x4 20x5 20x6 Problem B Use the information in the preceding problem, except that the machine was estimated to have a total service life of 25,000 hours and a total productive capacity of 950,000 units. Information on actual usage and production are as follows: Accumulated Depreciation Manufacturing Hours 3,500 7,000 5,000 4,500 3,000 2,000 Carrying Amount Units Produced 125,000 250,000 200,000 150,000 135,000 90,000 Required: Compute for the depreciation rate using based on input and based on output then prepare the depreciation table. Date 3) Double Declining Balance Date Depreciation Accumulated Depreciation Carrying Amount Depreciation
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