Requirements: 1. Prepare depreciation schedules for all methods mentioned above. 2. Prepare a letter to management for the "recommendation statement".

Course Output 01 You are the Accountant of Conjuring Company. On January 1, 2020, the first day of the first year of operations, the company acquired a Machine for P225,555,000 with an estimated useful life of 10 years and an estimated residual value of P12,555,000 and is deciding whether what method of depreciation should the company will employ for depreciating the asset You are tasked to prepare working papers showing schedules of computations of depreciation and carrying amount of the Machine, that the company had acquired, under the following methods of depreciation a. Straight-line method b. Output method c. Working hours method d. Sum-af-the-year's digits method e. 150% Declining balance method 1. 200% Declining balance method Below shows the schedule of projected hours to be used and the corresponding output in units to be produced per year for the company. Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Working hours 96,000 97,000 97,500 97,500 97,500 98,000 98,500 101,000 105,500 111,500 Production 400,500 380,000 370,000 362,400 320,500 280,200 260,600 240,000 200,200 185,600 The company is certain that they will meet the projected figure provided above. The company is also requesting for a recommendation on what method to be used by providing a recommendation statement in business correspondence form/letter) at the last part of the working papers on a separate sheet. REQUIREMENTS: 1. Prepare depreciation schedules for all methods mentioned above. 2. Prepare a letter to management for the recommendation statement