Question 10 An entity uses an item of machinery in the production of hazardous chemicals. Industry regulations limit the output of the machine to 1,000,000 litres, after which the machine must be decommissioned, decontaminated and recycled. The entity projects that the output of the machine will reach 1,000,000 litres within four years of its acquisition, at which time the machine will be decommissioned. The initial cost of the machinery is CU2 000 000, residual value is CU 100 000 In the 1st year of the acquisition the output was 350 000 litres, 21 year - 300 000 litres, 3d year - 200 000 litres, 4h 150 000 litres. Calculate the depreciation using: a) Straight-line method b) The unit of production method c) The diminishing balance method with the acceleration coefficient 1.5 Answer: Year Straight-line method The unit of production method The diminishing balance method 1 2 3 Total