New cupboards, desks and chairs (office furniture) were purchased and management want to see the difference between using the straight line and the diminishing balance methods of depreciation. Management is aware that usage would be constant over the life of the office furniture but still requires that you complete the two appropriate depreciation worksheets. The cost on 1 November 2021 was $16 841 ($15 310 + $1531 GST) and the residual value was expected to be $550 ($500 + $50 GST). Straight line depreciation of 10% p.a. and diminishing balance of 25% p.a. were considered appropriate.

Complete a time line to 30 June 2023 to show management the impact of purchasing during the financial year.

The depreciation worksheets should cover five years to 30 June 2026.