Lonsdale Ltd has a machine that makes one type of fin for surfboards. The machine was acquired in 2020 at a cost of $20 000 and it is expected that the machine will be able to produce approximately 2000 fins before it would need to be replaced. It is not expected to have any residual value. At the beginning of  2023 financial year, an attachment for the machine is acquired at a cost of $5000, which feeds the sheets of fibreglass into the fin-making machine. The attachment is expected to have a life of five years and can be utilised on other machines if required. The attachment will act to extend the useful life of the fin-making machine so that after 2023 the fin-making machine is expected to be able to produce a further 1000 fins in total. The numbers of fins produced in 2020, 2021, 2022 and 2023 were 400, 600, 500 and 800, respectively.

REQUIRED

Calculate the depreciation expense for the fin-making machine and attachment for each of the years from 2020 to 2023 and discuss whether the expense would be included as part of the cost of inventory.