1 July 2020, Adelaide Ltd purchased a TIDEL machine that cost $180,000. The transportation cost of the machine was $15,000. The custom duties cost was $5,000 and the maintenance cost of this machine is $2,000 per month.

The expected life of this machine is 5 years and will have a residual value of $50,000. Adelaide Ltd expects that 400,000 hours of machine work will be done over 5 years as given below:

Year	2020	2021	2022	2023	2024
Hours	80,000	120,000	100,000	70,000	30,000

Required:

(a) Show the total cost of the TIDEL machine. (1 mark)

(b) Assuming a 31 December year end, calculate the depreciation expense for each of the years, 2020 and 2021, using the following depreciation methods (show all workings):

(i) Straight-line. (3 marks)

(ii) Units-of-production; and (3 marks)

(iii) Reducing balance (at a rate of 30% per annum). (2 marks)