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Rashed Company acquired a machinery on January 1, 2015 amounting AED50,000. The useful life of the machinery is expected to be 4 years. The salvage

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Rashed Company acquired a machinery on January 1, 2015 amounting AED50,000. The useful life of the machinery is expected to be 4 years. The salvage value at the end of the life of the machinery is expected to be AED4,000. The machinery can produce maximum 40,000 units during its useful life. Required: a Calculate the amount of depreciation expense for the year 2016 by using straight-line depreciation method. (2 marks) b. Calculate the amount of depreciation expense for the year 2016 by using units-of-production depreciation method if total 8,000 units are produced during the year 2016. (2 marks)

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