Short Answer (4 Marks)

On 1^st January 2015, ABC Ltd. purchased a machine for SAR 120,000. The useful life of the machine is estimated to be 5 years with a salvage value of SAR 20,000. You are required to calculate depreciation expenses per year according to straight line method, accumulated depreciation and book value during the useful life of the machine.

Answer:

Depreciation Expenses per year:

Year	Depreciation Expense (SAR)	Accumulated Depreciation (SAR)	Book Value (SAR)
2015
2016
2017
2018
2019