Hampstead Ltd purchased new equipment on 1 January 2015, at a cost of $590 000 net of GST. The company estimated that the equipment has a useful life of 5 years and a residual value of $45 000.

Required

Assuming a financial year ending 30 June, calculate the amount of depreciation expense for each year ending 30 June 2015 through to 30 June 2020, with each of the following methods:

1.    Straight-line

2.    Diminishing balance.