Tutorial Week 12 Non-Current Assets 1. Depreciation Methods Et Cetera Warehouse purchases an electric forklift machine for $33 000 (net of GST/ GST exclusive) on 1 January 2017. The machine is expected to have a residual value of $3 000 at the end of its 4-year useful life. During its useful life, the machine is expected to be used for 15 500 hours. Actual annual hourly use was: 2017 - 4 500; 2018 - 4 000; 2019 - 4 000 and 2020 - 2 500. Round the depreciation cost per unit to the nearest dollar. Required: The business has asked you to prepare depreciation schedules for the following methods: (2) straight-line (prime cost); (b) diminishing reducing balance and (c) sum of year digit and (d) unit-of-production, given that the entity's financial year ends on 31 December. (a) Straight-line method Year Depreciation Depreciation Annual Accumulated Carrying cost rate depreciation amount book depreciation expense value wdy 2017 2018 2019 2020 (b) Reducing balance method Year Depreciation Depreciation Annual Accumulated Carrying cost rate depreciation deprecation amount expense 2017 2018 2019 2020