Question

Exercise 1 PT Mio bought an equipment and has the following data: Price of the equipment...

Exercise 1

PT Mio bought an equipment and has the following data:

Price of the equipment

Residual value

Life (year)

Life (hour)

2016

used

2017

Used

2018

used

Rp200,000,000

Rp50,000,000

3

20,000

5,000

7,000

8,000

Instructions:

1. calculate the depreciation for each year using straight line method

2. calculate the depreciation for each year using unit of output method

3. which method provides for highest depreciation expense for 2016?

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Answer #1

Solution -

1 Price (A) Salvage Vlaue (B) Depreciated Value (A-B) 20,00,00,000 5,00,00,000 15,00,00,000 Year 2016 2017 2018 As per SLM Me

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