Question 12

7 Points

On 1 January 2020, a company which prepares financial statements to 31 December each year buys a machine at a cost of 78,000. The machine's useful life is estimated at three years with a residual value of 18,125. The machine is expected to achieve 70,000 units of production over its useful life, as follows: (7 Marks)

Year	Number of unites
2020	25,000
2021	35,000
2022	10,000

Fill the blank with the correct amount.

1. thediminishing balance method (at a rate of 35%)

Year	Carrying amount	Depreciation at 35%
2020	78,000	Blank1
2021	Blank 2	Blank3
2022	Blank4	11534.25

2. the unitsof production method.

Year	Number of unites	Depreciation
2020	25,000	Blank5
2021	35,000	Blank 6
2022	10,000	Blank 7

blank1:

blank2:

balank3:

blank4:

blank5:

blank6:

bkank7: