Edwards Ltd recently paid $290 000 for manufacturing equipment, which is expected to have a useful life of 4 years and a residual value of $50 000. The manager of Edwards Ltd wants information about the effect that various depreciation methods will have on profit and asks you to prepare a schedule comparing the straight-line and diminishing balance methods of depreciation. Ignore GST.

Required

Prepare a schedule and calculate the annual depreciation charge and end-of-year carrying amount for the expected life of the equipment.