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Q6-(6 Marks: c1:6): Tuzun Company purchased a new machine on September 31, 2019, at a cost of BD200,000. The company estimated that the machine
Q6-(6 Marks: c1:6): Tuzun Company purchased a new machine on September 31, 2019, at a cost of BD200,000. The company estimated that the machine will have a salvage value of BD14,000. The machine is expected to be used for 15,000 working hours during its 6-year life. Required: By using the accounting information provided above compute the depreciation expense under the following methods for the year indicated. 1- Straight-line for 2019. 2- Units-of-activity for 2019, assuming machine usage was 2,000 hours. 3- Declining-balance using double the straight-line rate for 2019 and 2021. (2 M) (2 M) (2 M)
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