1. A television company purchased machinery for BD20,000 in 2009. It isestimated to have a useful life of 10 years with a scrap value of BD4000.00,production unit of 40,000 and working hours of 12,000. The company alsoused this machinery to produce 4,400 units in 2010. Compute thedepreciation of the machine using service output method.2. Momhil Inc. bought a professional coffee machine costing 2100,000.00.0verits useful life it is estimated that it can process 5,000kgs of coffee or 200,000servings. Entity can salvage the machine 25,000 at the end of useful life.Calculate the depreciation for this year if the entity is using unit ofproduction method and it has: a) process 200 kg of coffee, b) served 15,000customers.NOTE: shuld be write formula before answer

Name: 1. A television company purchased machinery for BD20,000 in 2009. It
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Description: 1. A television company purchased machinery for BD20,000 in 2009. It isestimated to have a useful life of 10 years with a scrap value of BD4000.00,production unit of 40,000 and working hours of 12,000. The company alsoused this machinery to produce

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1. A television company purchased machinery for BD20,000 in 2009. It is estimated to have a useful life of 10 years with a scrap value of BD4000.00, production unit of 40,000 and working hours of 12,000. The company also used this machinery to produce 4,400 units in 2010. Compute the depreciation of the machine using service output method.

1. A television company purchased machinery for BD20,000 in 2009. It is estimated to have a useful life of 10 years with a scrap value of BD4000.00, production unit of 40,000 and working hours of 12,000. The company also used this machinery to produce 4,400 units in 2010. Compute the depreciation of the machine using service output method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A television company purchased machinery for BD20,000 in 2009. It is estimated to have a useful life of 10 years with a scrap value of BD4000.00, production unit of 40,000 and working hours of 12,000. The company also used this machinery to produce 4,400 units in 2010. Compute the depreciation of the machine using service output method.