Answer:
Explanation:
Purchase price = 347,400
Useful life = 10 years
Salvage value = 17,400
Production unit = 264,000
Unit produce = 29,580
Working hours = 25,000
Working hours used = 2,650
Workings
Depreciable amount = 347,400 - 17,400 = 330,000
1. Straight line depreciation = 347,400-17,400 /10
= 330,000 / 10 =33,000
2.Units of output = 29,580/264,000*330,000
= 36,975
3. Working hours method
2650/25,000*330,000 = 34,980
4.Sum of the years digit
Sum of the digits = 10(10+1)/2 =55
330,000 *10/55*4/12 +330,000*9/55*8/12 = 56,000
5 Declining balance at 20%
2020 = ( 347,400 *20%) = 69,480
2021 = 347,400 -69,480 * 20% =277,920 *20%
277,920 - 55,584 = 222,336
