Chapter (9) Practices Q1: On January 1, 2003 Baghdad Company purchased a machine for ID 22000. The company expects the service live of the machine to be five years and it will be worth ID 2000 at the end of its five-year service life. During that time, it is expected that the machine will produce 100000 units Actual production during the five years of the asset's life was: Year Units produced 2003 22000 2004 24000 2005 15000 2006 20000 2007 21000 Total 102000 Required: Calculate annual depreciation for the five- year life of the machine by using of the following methods. (Round all computations to the nearest Iraqi dinner). 1- Double declining balance method. 2- Sum-of-the-years digits. 3- Units of production method.
Chapter (9) Practices Q1: On January 1, 2003 Baghdad Company purchased a machine for ID 22000. The company expects the service live of the machine to be five years and it will be worth ID 2000 at the end of its five-year service life. During that time, it is expected that the machine will produce 100000 units Actual production during the five years of the asset's life was: Year Units produced 2003 22000 2004 24000 2005 15000 2006 20000 2007 21000 Total 102000 Required: Calculate annual depreciation for the five- year life of the machine by using of the following methods. (Round all computations to the nearest Iraqi dinner). 1- Double declining balance method. 2- Sum-of-the-years digits. 3- Units of production method.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Chapter (9) Practices
Q1: On January 1, 2003 Baghdad Company purchased a machine for ID 22000. The
company expects the service live of the machine to be five years and it will be
worth ID 2000 at the end of its five-year service life. During that time, it is
expected that the machine will produce 100000 units Actual production during
the five years of the asset's life was:
Year
Units produced
2003
22000
2004
24000
2005
15000
2006
20000
2007
21000
Total
102000
Required:
Calculate annual depreciation for the five- year life of the machine by using of the
following methods. (Round all computations to the nearest Iraqi dinner).
1- Double declining balance method.
2- Sum-of-the-years digits.
3- Units of production method.
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