Question: FLORIDA Trader bought a machine on 1 March 20X7, at a total cost of $3,200,000. The machine had an estimated useful life of 6 years

FLORIDA Trader bought a machine on 1 March 20X7, at a total cost of $3,200,000. The machine had an estimated useful life of 6 years with a scrap value of $200,000. Required: Calculate the depreciation expense for the years ended 31 December 20X7 and 31 December 20X8 under the: a) Straight line method. (6 marks) b) Double declining balance method. (8 marks) c) Explain how the different methods of depreciation affect the profit of FLORIDA Trader. (6 marks)

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