ASSIGNMENT $3(14$ marks$)$

Veto Ltd$.$ purchased a machine on January $1,2022$ at a cash price of $$18,000.$ Related expenditures are freight charges $$1,000$ and installation cost $$3,000.$

Expected salvage value $=$$$1,000$

Estimated useful life in years $=10$ years

Estimated useful life in machine hours $=7,000$ hours

Question: Compute end of year book value for the first two years using the following methods. You must prepare a depreciation schedule for each method.

a$.$ Straight Line

b$.$ Declining Balance$*$

c$.$ Units of Activity$*$

$*$For the declining$-$balance method, the company uses the double$-$declining rate. For the units of activity method, actual machine hours of use in $202$ and $2023$ were $300$ hours and $1000$ hours respectively.