21.5A A printer costs 800. It will be kept for five years and then scrapped. Show your calculations of the amount of depreciation each year if (a) the reducing balance method at a rate of 60 per cent was used, (b) the straight line method was used. 21.11A C. Harvey, a sole trader, purchased a delivery van on 1 March 2020 for 11,360 and some new equipment on 1 September 2020 for 7,000. He expects that the van will have a useful life of four years, after which it should have a tradu in vole of 2,000. The scrap value of the equipment after ten years' use is estimated to be 1,000. Harvey charges depreciation using the straight-line method. Required: What should the depreciation expense be in relation to these two items for Harvey's financial year ended 30 November 2020 assuming that: (a) He charges a full year's depreciation in the year of purchase and none in the year of sale. (6) He charges depreciation on a monthly basis. 21.16A A company maintains its non-current assets at cost. An accumulated provision for deprecia- tion account is used for each type of asset. Machinery is to be depreciated at the rate of 15 per cent per annum, and fixtures at the rate of 5 per cent per annum, using the reducing balance method. Depreciation is to be calculated on assets in existence at the end of each year, giving a full year's depreciation even though the asset was bought part of the way through the year. The following transactions in assets have taken place: 2019 1 January Bought machinery 2,800, fixtures 290 1 July Bought fixtures 620 2020 1 October Bought machinery 3,500 1 December Bought fixtures 130 The financial year end of the business is 31 December You are to show: (a) The machinery account. (b) The fixtures account. (c) The two separate accumulated provision for depreciation accounts. (d) The non-current assets section of the balance sheet at the end of each year, for the years ended 31 December 2019 and 2020. 21.25A On 31 March 2019 Dixie's business traded-in a machine (a Z-15 model) which it had origi- nally purchased on 1 April 2016 for 19,000. Dixie had depreciated the Z-15 at 10 per cent per annum using the straight-line method. Dixie part-exchanged the Z-15 for a newer model (the Z-18). The vendor's list price for the Z-18 was 32,000 but Dixie only paid 20,000 plus the trade-in in full settlement. Required: What was the profit or loss on the disposal of the Z-15 in Dixie's Income Statement for the financial year to 31 March 2019