contestada

A cement production company purchased and placed in serviced an asset for its production. The cost basis is RM600,000 and it has an estimated Market Value of RM90,000 at the end of an estimated useful life of 20 years. (i). Compute the depreciation amount in the third year and the Book Value at the end of the fifth and tenth year of life by the Straight Line (SL) method. k (4 markah/marks) (ii).Tabulate the annual depreciation amount and the book value at the end of each year until year 10 by Double Declining Balance, DDB method. State the year 3 depreciation amount and book value for year fifth and tenth. (7 markah/marks) (iii) Compute the depreciation amount using The Modified Accelerated Cost Recovery System (MACRS) method, using General Depreciation System (GDS). (4 markah/marks)