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Q-4 Neon Company purchased a machinery unit of Rs. 18,000 on 01 January 2016 and its salvage value is Rs. 2,000. Its useful life is
Q-4 Neon Company purchased a machinery unit of Rs. 18,000 on 01 January 2016 and its salvage value is Rs. 2,000. Its useful life is 4 years. It is expected that machinery unit is expected to be used in 160,000 hours. Actual annual hours were as: FY 2016 - 25,000 hours FY 2017= 35,000 hours FY 2018= 40,000 hours FY 2019= 60.000 hours Requirements: Prepare depreciation schedule by using three depreciation method a- Straight Line Method b- Units of Activity C- Declining balance using double the straight-line rate
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