On 1 January 2010, an entity, which prepares financial statements to 31 December each year, buys a machine at a cost of EUR 92,600. The machine’s useful life is estimated at four years with a residual value of EUR 12,000. The machine is expected to, achieve 50,000 units of production over its useful life, as follows: 

Calculate depreciation charges for each of these four years using: 

(a) the straight-line method; 

(b) the diminishing-balance method (at a rate of 40 per cent); 

(c) the units-of-production method.

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Year to 31 December 2010 Year to 31 December 2011 Year to 31 December 2012 Year to 31 December 2013 10,000 units 20,000 units 15,000 units 5,000 units