Lodgemoor Company acquired a machine on 1 July 20X0 for £48,000 and immediately spent a further £2,000 on its installation. The machine was estimated to have a useful life of eight years and a scrap value of £4,000 at the end of this time.

Required:

Compute the depreciation provision for the year ended 30 June 20X1 and 20X2 if the company chooses to use:

(a) the straight-line method;

(b) the reducing-balance method.