On October 5, 2001, NOON C. acquired a new machine at a cost of Birr 20,000. T he machine has a useful life of 5 years and salvage value of Br. 10,000. It is estimated that the equipment will produce 2,000,000 units of products throughout its life. The equipment produced 95,000 units and 300,000 units of products during the fiscal periods ending December 31, 2001 and December 31, 2002 respectively. On the basis of the above data, compute depreciation expense to be recorded on Dec. 31, 2002 using:
i. The units of production method
ii. The declining-balance method
ii. The sum-of-years-digits method
iv. The straight-line method

Answer rating: 100% (QA)

Units of production method are as follows B 1 Depreciation as per unit production Depreciat... View the full answer