Question

Q1-

Abdulaziz Co. purchased a machine in 2013 for 50,000 that has a useful life of 5 years with a salvage value of 5,000.

Calculate the depreciation expense, accumulated depreciation, book value throughout its useful life using:

1- Straight-line Method.

2- Units of Production Method if the machine produces 100,000 units.

Here is a table of units produced each year:

First	Second	Third	Fourth	Fifth
23,000	25,000	-	30,000	22,000

3- Double Declining Balance Method (2 Marks).

Answer 1

stng straight- ine method Salvagevalus COst OP asset- Csepul life Depreclartion = +50,000-$S000 5 years 二49000 year Becinning depreciationAecumulated Nlet depreiation Scot value 虫410061 expense Value $50.000 LLIOO0 S9000 18000 32000 28000 27000 32000 9000 14000 36000 23000 9000 144060 445000 5000 5 111

ostng tsof preduction methed Depiceiationlit Saluage value 2ost ap aS6et Total hu ber of coits $5000 50000 L,00000 it $0451t Net Kook orgisaDepreciationAlo of depae.ation tecummulated depreciation year itlexpense peronit COst Nalue $10350 $50co0 So.L5 $396 5 45 2300016356 28400 1600 1250 25000 2 e8lpooou5 $28400 0Le5 14900 ous 28400 पव०० 20,000 35100 13500 5000 900 4S000 22000

Ostng double dech Balance method Depreciation rate sefeul liee 40.1. year orginal Depreeiation Depreciation Acunulated Net Book cost rate depreciation valcee 90,000 L201000 $50000 401 18c00 $30p00 401 12000 32D00 39200 42520 401 18000 Og00 200 4320 1480 பெ0 5000 22-2L coe Can't deprecaate hct oae than NOte i saloage value - c