Asif Company acquired machinery on January 1, 2014 with an amount AED84,000. The useful life of the machinery is expected to be 4 years. The salvage value at the end of the life of the machinery is expected to be AED4,000. The machinery can produce maximum 80,000 units during its useful life. Required: - a) Calculate depreciation expense for the year 2014, 2015, 2016, and 2017 by using straight-line method. Also calculate asset's book value at the end of these years. (Hint: Make a Table to show calculations) b) Calculate depreciation expense for the year 2014, 2015, 2016, and 2017 by using units of production method if following number of units were produced. Also calculate asset's book value at the end of these years. 2014: 22,000 units produced 2015: 18,000 units produced 2016: 15,000 units produced 2017: 25,000 units produced (Hint: Make a Table to show calculations) c) Calculate depreciation expense for the year 2014, 2015, 2016, and 2017 by using double declining balance method. Also calculate asset's book value at the end of these years. (Hint: Make a Table to show calculations)

Asif Company acquired machinery on January 1, 2014 with an amount AED84,000. The useful life of the machinery is expected to be 4 years. The salvage value at the end of the life of the machinery is expected to be AED4,000. The machinery can produce maximum 80,000 units during its useful life. Required: - a) Calculate depreciation expense for the year 2014, 2015, 2016, and 2017 by using straight-line method. Also calculate asset's book value at the end of these years. (Hint: Make a Table to show calculations) b) Calculate depreciation expense for the year 2014, 2015, 2016, and 2017 by using units of production method if following number of units were produced. Also calculate asset's book value at the end of these years. 2014: 22,000 units produced 2015: 18,000 units produced 2016: 15,000 units produced 2017: 25,000 units produced (Hint: Make a Table to show calculations) c) Calculate depreciation expense for the year 2014, 2015, 2016, and 2017 by using double declining balance method. Also calculate asset's book value at the end of these years. (Hint: Make a Table to show calculations)

Name: Asif Company acquired machinery on January 1, 2014 with an amount AED
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Description: Asif Company acquired machinery on January 1, 2014 with an amount AED84,000. Theuseful life of the machinery is expected to be 4 years. The salvage value at the end of thelife of the machinery is expected to be AED4,000. The machinery can produce ma

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 8P: Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of...

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