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1 Question 3 - Depreciation (13 marks) **Please only enter your response in the blue cells. This is the only area that will be graded. 2 3 5 4 a) Depreciation - Declining Balance (6 marks) 6 Zeelight Ltd. Purchased machinery on October 1, 2020 for $55.000. The machinery is estimated to have a residual 7 value of $6,000 after a useful life of 8 years. The company accounts for partial year depreciation using the nearest 3 whole month and has a December 31st year end. 9 10 Required: 11 Calculate the depreciation expense for 2021, using the double declining balance method in the space provided below. 12 The depreciation expense for 2021 - 14 15 Workspace 16 Depreciation Accumulated Net Book Year Expense Depreciation Value Cost 17 15 19 20 21 22 25 b) Depreciation - Overhaul and Change in Estimate 7 marks) 29 30 On January 1, 2013, Ghost Inc. purchased a machine for $600,000. The machine was being depreciated using the 31 straight-line method over an estimated useful life of ten years, with no residual value. At the beginning of 2020, 32 the company paid $150,000 to overhaul the machine. As a result of this improvement, the company estimated 33 that the useful life of the machine would be extended an additional five years (15 years total) 34 Ghost Inc. has a December year end 35 36 Regined 37 Calculate depreciaiton expense for 2020 in the space provided below 39 The depreciation expense for 2020 is 38 41 Workspace 45 46 47 43 50