Question: A machine was bought on 1st July 2017 for $ 40,000. The policy is to depreciate the motor van at 20% on reducing balance method

A machine was bought on 1st July 2017 for $ 40,000. The policy is to depreciate the motor van at 20% on reducing balance method and depreciation is charged in full in the year of purchase.

Required:

Calculate the depreciation charge for the years ended 31st December 2017, 2018 and 2019. Show the following accounts for the three years:

-Machine account

-Accumulated depreciation account

-SPOL Extract

-SFP Extract

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