Amicable Company purchased a machine at a cost of P635, 000 on January 1, 2012. It was estimated that the machine would have a residual value of P35, 000. The estimated useful life is 5 years, 60, 000 service hours and 150, 000 production units. Actual operations Service hours Unit produced 2012 14, 000 34, 000 2013 13, 000 32, 000 2014 10, 000 25, 000 2015 11, 000 29, 000 2016 12, 000 30, 000 Required: Prepare a depreciation table for the following methods: a. Straight line b. Service hours
Problem 8:
Amicable Company purchased a machine at a cost of P635, 000 on January 1, 2012. It was estimated that the machine would have a residual value of P35, 000. The estimated useful life is 5 years, 60, 000 service hours and 150, 000 production units.
Actual operations Service hours Unit produced
2012 14, 000 34, 000
2013 13, 000 32, 000
2014 10, 000 25, 000
2015 11, 000 29, 000
2016 12, 000 30, 000
Required:
Prepare a
a. Straight line
b. Service hours
c. Production method
d. Sum of years’ digits
e. Double declining balance
f. what is/are the rules in solving the problem?
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