20 What is the depreciation expense for each equipment purchased by Walkers Ltd. to be charged for the first year knowing that it uses 200% declining balance method (refer to Question (16) above)? Justify your answer. (6 marks)

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6 Walkers Ltd. buys robots for stacking products inside the warehouse costing $1,850,000. The company pays $160,000 for installation and $38,000 for training four members of staff on how to use it. They also pay the supplier $23,500 to test the robot prior to starting its usage in the warehouse. Six months after starting to use the equipment, the company pays the supplier $126,000 for a broken part that was due to the operator listing a crate that was too heavy for the robot. The supplier explained that as the robot was used outside its specifications, the fault is not covered by the warranty and must be paid by Johnson. How much will Ellie be required to capitalise as the cost of the machine? Justify your answer. (4 marks)

Robot capitalized cost:	Amount
Robot purchases cost	$ 1,850,000
Add: installation cost	160,000
Training cost	38,000
Robot testing cost	23,500
Repairing cost	126,000
Capitalized robot cost	$ 2,197,500