1. Mira Ltd. Purchased equipment on January 1, 2019, at a total invoice cost of JD 200,000. The equipment has an estimated residual value of JD 5,000 and an estimated useful life of 10 years. The equipment is expected to be used for 50,000 hours during its 10-year life. 
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3. Instructions: 
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5. 1 - what is the amount of depreciable cost? 
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7. 2- what is the depreciation expense for 2019 if the declining balance method for depreciation is used? 
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9. 3- what is the depreciation expense for 2024 if the straight-line method for depreciation is used? 
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11. 4- what is the book value of the equipment at 31/12/2028, if the declining balance method for depreciation is used? 
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13. 5. what is the accumulated depreciation of the equipment on 31/12/2028, if the declining balance method for depreciation is used? 
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15. 6-what is the book value of the equipment on 31/12/2023 if the straight-line method for depreciation is used? 
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17. 7. what is the annual rate of depreciation using the straight-line method? 
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19. 8- Assuming the equipment usage was 4000 hours for 2019, what is the depreciation expense for 2019 if the units of activity method for depreciation is used? 
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21. 9. Assuming the equipment usage was 4000 hours for 2019, and 6000 hours for 2020 what is the accumulated depreciation of the equipment on 31/12/2020 if the units of activity method for depreciation is used? 
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23. 10- suppose Mira Ltd. Purchased equipment on July 1, 2019, what is the depreciation expense for 2019 if the straight-line method for depreciation is used?

Answer rating: 100% (QA)

1 Depreciable cost Purchase cost Residual value 2000005000 JD 195000 2 Double declining deprec... View the full answer