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(a) Saimi purchased a pump for his new house at a cost of RM16,000. The useful life pump is 10 years with a scrap value

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(a) Saimi purchased a pump for his new house at a cost of RM16,000. The useful life pump is 10 years with a scrap value of RM800. Calculate the book value at the end of the five years using the: i. Straight line method, ii. declining balance method, iii. Sum-of-year digits method. (3 marks) (b) A new equipment costing RM 2,100 is purchased. Using the declining balance rate of 20%, determine the: i. accumulated depreciation for the first three years of use, ii. book value at the end of six years. (2 marks)

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