Compute the depreciation schedule for the machine

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Reference no: EM131142333

1. A manufacturing company has purchased an alignment device for AED. 10,00,000. The device can be used for 15 years. The salvage value at the end of the life of the device is 10% of the purchase value. Compute the depreciation schedule for the machine by each of the following depreciation methods

(a) Straight line method of depreciation

(b) Sum-of-the-years digits method of depreciation

Also find the following using the double declining balance method of depreciation:

(a) Depreciation at the end of the seventh year

(b) Depreciation at the end of the twelfth year

2. The Company purchased AED 45,000 of research equipment, which it believes will have insignificant at the end of its 5-year life. Compute the depreciation schedule for the equipment by each of the following methods:

(a) Straight line.

(b) Sum-of-years'-digits.

Reference no: EM131142333

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