A business has just bought a machine for N$ 8,000 it will be kept in use for four (4) years, and then will be disposed of for an estimated amount of N$500.00 The business management asks for a comparison of the amounts changed as depreciation using both methods

1. Straight line methods (7 Marks)
2. Diminishing balance methods, using a depreciation rate of 50% (8 Marks)