1. 16.1 A machine costs $8,000. It will be kept for five years, and then sold for an estimated figure of $2,400. Show the calculations of the figures for depreciation (to nearest $) for each of the five years using (a) the straight line method, (b) the reducing balance method, for this method using a depreciation rate of 20 per cent.

2. 16.2 A motor vehicle which cost $12,000 was bought on credit from Trucks Ltd on 1 January 20X9. Financial statements are prepared annually to 31 December and depreciation of vehicles is provided at 25 per cent per annum under the reducing balance method.

   Required: Prepare the motor vehicle account and the accumulated provision for depre- ciation on motor vehicles account for the first two years of the motor vehicles working life.