Question
Universal Company has purchased a new machine on 1 April 2020 at a cost of $12,000. The company estimated that the machine will have a
Universal Company has purchased a new machine on 1 April 2020 at a cost of $12,000. The company estimated that the machine will have a residual value of $1,000. The machine is expected to be used for 20,000 working hours during its 5-year life. Compute the depreciation expense under the following methods for the year indicated: a. Prepare the depreciation schedule under Strait-line method for 5 years; b. Compute the depreciation amount under Units-of-activity for 2020, assuming machine usage was 1,300 hours and c. Compute the depreciation table for 5 years under the declining-balance method
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