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Written Answer or clear typing in the right format please~ (A) On 1 January 2018, Orchid Limited purchased a motor car at a cost of
Written Answer or clear typing in the right format please~
(A) On 1 January 2018, Orchid Limited purchased a motor car at a cost of $270,000. The motor car had an estimated residual value of $30,000 and expected to be used for 200,000 miles over its estimated useful life of 8 years. Required: (a) Assume the company uses the units-of-production method, compute the depreciation expense on the motor car if the usage of the motor car for the year ended 31 December 2018 is 35,000 miles. (2 marks) (b) Assume the company uses the double-declining-balance method, compute (i) the depreciation expense on the motor car for the year ended 31 December 2018; and (ii) the carrying amount of the motor car as at 31 December 2018. (iii) the accumulated depreciation for the motor car as at 31 December 2019. (7 marks)Step by Step Solution
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