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Write a table comparing the annual depreciation charges

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A manufacturing company starts in business on 1 January 2015. On that date, it purchased a machine by cheque to be used in its manufacturing operations. Demand is expected to be constant, and the machine is expected to be used over a period of eight years with zero residual value at the end of its useful life.

Question (a) Using any amount between RM10, 000 and RM50, 000 as the machine cost, write a table comparing the annual depreciation charges and the net book values for the first FIVE (5) years using the straight-line method and the reducing balance method. For the reducing balance method, you are to use a depreciation rate of between 35% and 50% per annum.

Question (b) In your opinion, which method of depreciation is more appropriate for the machine? Explain it.

Question (c) Critically discuss THREE (3) causes of depreciation that are relevant to the machine.

Reference no: EM132602295

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