Gulf Engineering Company purchased a machine for OMR 200,000. The Company expects the service life of...

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Gulf Engineering Company purchased a machine for OMR 200,000. The Company expects the service life of the machine to be 5 years. During that time, it is expected that the machine's useful life will be 40,000 hours. The anticipated salvage value is OMR 10,000. The machine is disposed of after five years of use. Actual hours used during the five years of the machine's life was Year-1: 5,000 hours; Year-2: 6,000 hours; Year-3: 7,000 hours. Calculate the book value of machine at the end of third year? Use unit-of-activity depreciation method. The accounting year-end is December 31 of each year: a. OMR 114,500 Ob. OMR 176,250 c. OMR 147,750 d. OMR 231,250 Gulf Engineering Company purchased a machine for OMR 200,000. The Company expects the service life of the machine to be 5 years. During that time, it is expected that the machine's useful life will be 40,000 hours. The anticipated salvage value is OMR 10,000. The machine is disposed of after five years of use. Actual hours used during the five years of the machine's life was Year-1: 5,000 hours; Year-2: 6,000 hours; Year-3: 7,000 hours. Calculate the book value of machine at the end of third year? Use unit-of-activity depreciation method. The accounting year-end is December 31 of each year: a. OMR 114,500 Ob. OMR 176,250 c. OMR 147,750 d. OMR 231,250

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Answer Optiona OMR 114500 is the correct answer Calculation Cost of Machine ... View the full answer