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Compute depreciation expenses under straight-line method

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On 1st April 2008 Abdulla installs a new machinery costing SAR 312,000 with a five year life and estimated salvage value of SAR28000. Management estimates that the machine will produce 1136000 units of the product during its lifetime. Actual units of production were as follows:

1st year 245600 units,

2nd year 230400 units,

3rd year 227000 units,

4th year 232600 units &

5th year 200400 units.

Question 1: Compute depreciation Expenses under Straight-line method, Double declining balance method and Units of production method the machine must not be depreciated below its estimated salvage value

Reference no: EM132583389

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