Small Ltd signed a 3-year contract with Big Ltd for the use of a factory on 1 July 2020 with the option to purchase the machinery at the end of the lease term. It is reasonably expected that Small Ltd will exercise the bargain purchase option. The leased machinery meets the criteria of a leased asset in accordance with AASB16 Leases. The following information shows the lease terms: Lease term (non-cancellable) 3 years Expected useful life of the machinery 8 years Expected residual value of the machinery nil Residual value guaranteed $40 000 Bargain purchase price at the end of lease term $60 000 Net initial directly attributable costs (paid at 1 July 2020) $10 000 Initial lease payment (paid at 1 July 2020) $50 000 Annual lease payment (paid in arrears) $80 000 Interest rate implicit in the lease 12% p.a. What is the amount of depreciation expense that Small Ltd should recognise for the year ended 30 June 2021 in accordance with the requirements of AASB 16 Leases? $84,951 $98,284 $350.77 $36,857