ABC Limited decided to purchase new Plant on the 1st day of July 2022. The cost of new machinery is $500000 .ABC paid the freight cost of $4000 and the installation cost of $6500. This plant is expected to produce 10000 units during its life with a residual value of $7800. The plant produced 1000 units each year. The yearly production of this plant remains the same during its useful life. You have been asking following question.

1. What is the cost of plant?

2. What is the appropriate method of depreciation to solve this question?

3. According to above subjected method calculate depreciation