A company bought a machine on 1 January 2020 for RM170,000. It is expected to last for
Question:
A company bought a machine on 1 January 2020 for RM170,000. It is expected to last for 10 years and then be sold for scrap for RM10,000. Usage over the next 10 years is expected to be:
Year ..........................Number of days
1..........................................300
2.........................................300
3. ........................................300
4...........................................300
5...........................................250
6...........................................250
7...........................................250
8..........................................250
9...........................................250
10..........................................250
Total......................................2,700
Required:
Calculate the depreciation to be charged for Year 2020 under the following methods. (Show all relevant workings)
(a) Straight line method
(b) Reducing balance method at 30%
(c) Machine hours method
(d) Sum-Of-Digits method
Expert Answer:
