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Solo Ltd Purchased a new machine on 1 October 2013, at a cost of $96 000. The company estimated that the machine will have a
Solo Ltd Purchased a new machine on 1 October 2013, at a cost of $96 000. The company estimated that the machine will have a residual value of $12000. The machine is expected to be used for 10000 Working hours during its 5-year life. Required Calculate the depreciation expense under the following methods for the year indicated (a) Straight-line for reporting period ended 31 December 2013. (b) Diminishing-balance using double the straight-line rate for 2013 and 2014. (e) Units-of-production for reporting period ended 31 December 2013, assuming machine usage was 1700 hours
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