Singh Enterprises has an accounting year to 31 December and uses the straight-line method of depreciation. On 1 January 2006 the business bought a machine for £10,000. The machine had an expected useful life of four years and an estimated residual value of £2,000. On 1 January 2007 the business bought another machine for £15,000. This machine had an expected useful life of five years and an estimated residual value of £2,500. On 31 December 2008 the business sold the first machine bought for £3,000.

Required:

Show the relevant income statement extracts and statement of financial position extracts for the years 2006, 2007 and 2008.