Question

Instruction: Fill in the blanks. Do not use thousand seperator, use 2 decimal places only An ice machine was purchased for Php250,000 with a residual value of Php50,000 and a life of 1,500 tonnes. What is its depreciation expense per unit? During the period of March to May, the machine peroduced 50 tonnes of ice. What is the units-of- production depreciation during the said period? Cost 250000 Residual 50000 Life in units 1500 Depr Exp per Unit Units Exposed 50 Depreciation Exp Instruction: Fill in the blanks. Do not use thousand separator, use 2 decimal places only A photocopy machine was purchased for Php75,000 with a lifetime of 5 years and has a residual value of Php5,000. For a five year straight-line depreciation schedule, what is the asset's depreciation expense per year? Cost 75000 Residual 5000 Life Dep Exp per Year!

Answer 1

Units-of-Production Depreciation:

Cost	250,000
Residual	50,000
Life in Units	1,500
Depr. Exp. Per Unit	133.33
Units Exposed	50
Depreciation Exp.	6,666.50

Calculations:

Depreciation expense per unit = (Cost - Residual) ÷ Life in Units

= (250,000-50,000)/1,500

= 200,000/1,500

= 133.33

Depreciation expense = Depreciation expense per unit x Units Exposed

= 133.33 x 50

= 6,666.50

Straight-line depreciation:

Cost	75,000
Residual	5,000
Life	5
Dep. Exp. Per Year	14,000

Calculations:

Depreciation expense per year = (Cost - Residual)/ Life

= (75,000-5,000)/5

= 14,000