i. Straight line method

ii . 20% reducing balance method

ACC Bhd purchased new machinery for its factory production on 1st July 2020. The following are the information relate to the new machinery RM 250,000 15,000 5,000 Cost of the machinery Site inspection and preparation Delivery Charge Insurance during delivery Installation cost 2 years maintenance contract 250 3,750 25,000 Required: CALCULATE the total cost of the machinery to be capitalized in accordance to IAS 16, Plant Property and Equipment. (6 marks) b) The newly purchased machinery has nine (9) years useful life, and at the end of the 9th year it can be scrapped for RM 4,000. The management was considering using either the straight line method, or the reducing balance method (20% rate). To assist the management, you are required to CALCULATE the annual depreciation charge, the cumulative depreciation and the book value of the machinery for the year ending 31* December 2018, 2019, and 2020 using