(b) the reducing balance method, for this method using a Gepr . 21.5A A printer costs 800. It will be kept for five years and then scrapped. Show your calculations of the amount of depreciation each year if (a) the reducing balance method at a rate of 60 per cent was used, (b) the straight line method was used. nec Ann It will be used for four years, and then sold back to the supple IUI CILI 21.11A C. Harvey, a sole trader, purchased a delivery van on 1 March 2020 for 11,360 and some new equipment on 1 September 2020 for 7,000. He expects that the van will have a useful life of four years, after which it should have a trade-in value of 2,000. The scrap value of the equipment after ten years' use is estimated to be 1,000. Harvey charges depreciation using the straight-line method. Required: would the depreciation expense be in relation to these two items for Harvey's financial year ended 30 November 2020 assuming that: (a) He charges a full year's depreci 10) He charges depreciation on a monthly basis. es a full year's depreciation in the vear of purchase and none in the year of sale, Chapter 21. Depreciation 21.16A A company maintains its tion account is used for each tv per annum, and fixtures at the Depreciation is to be calculated depreciation even thought aintains its non-current assets at cost. An accumulated provision for deprecia- each type of asset. Machinery is to be depreciated at the rate of 15 per cent ires at the rate of 5 per cent per annum, using the reducing balance method. calculated on assets in existence at the end of each year, giving a full year's though the asset was bought part of the way through the year. The following ansactions in assets have taken place: 2019 1 January Bought machinery 2,800, fixtures 290 1 July Bought fixtures 620 2020 1 October Bought machinery 3,500 1 December Bought fixtures 130 The financial year end of the business is 31 December. You are to show: (a) The machinery account. (b) The fixtures account. (c) The two separate accumulated provision for depreciation accounts. (d) The non-current assets section of the balance sheet at the end of each year, for the years ended 31 December 2019 and 2020. Writem business traded-in a machine (a Z-15 model) which ith el) which it had origi- depreciated the Z-15 at 10 per cent per annum why his view is incorrect. 21.25A On 31 March 2019 Dixie's business tra lv purchased on 1 April 2016 for 19,000. Dixie had depreciated the using the straight-line method. (the Z-18). The vendor's list price for the Z-18 was Dixie part-exchanged the Z-15 for a newer model (the Z-18). The ven 32.000 but Dixie only paid 20,000 plus the trade-in in full settleme be 7-15 in Dixie's Income Statement for the financial Required: What was the profit or loss on the disposal of the Z-15 in Dixie's Income Statement year to 31 March 2019