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INSTRUCTIONS: . Answer question ONE (compulsory) and any other TWO questions QUESTION ONE (a) Tetra...

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Accounting

INSTRUCTIONS: . Answer question ONE (compulsory) and any other TWO questions QUESTION ONE (a) Tetra Inc. purchased a new robotic drill for its assembly line operation. The total cost of the asset was Ksh 125,000, including shipping, installation, and testing. The asset is expected to have a useful life of five years and a residual value of Ksh 10,000. The total service life, expressed in hours of operation, is 10,000 hours. The total output the machine is expected to produce over its life is 1,000,000 units. The asset was purchased on January 1, 2015, and it is now December 31, 2016. In 2016, the asset was used for 2,150 hours and it produced 207,000 units. Required: Calculate the 2016 depreciation charge using the following methods: i. Straight-line. ii. Activity, based on units of input. iii. Activity, based on units of production. (3 Marl (3 Mark (3 Ma

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