On 1 July 2023, Victor Ltd purchased an excavator with a list price of \($351\) 500. Due to their business relationship, the supplier provided a trade discount of 10% and credit terms of 2/10, n/30. Payment was made within the discount period. Freight costs of \($8\) 100 and insurance amounting to \($3,000\) was paid while the excavator was in transit. The excavator has a useful life of 5 years and a residual value at the end of its useful life of \($15\) 000. Ignore GST.

Required

(a) Determine the amount that should be debited to the plant and equipment account and prepare the general journal entry to record the purchase, assuming a financial year ending 30 June.

(b) Calculate the depreciation expense for each of the 5 years ending 30 June assuming use of:

i. the straight-line depreciation method ii. the diminishing balance method of depreciation.

(c) Prepare the journal entry to record depreciation expense for the year ending 30 June 2024 using the diminishing balance method of accounting for depreciation.