ABCD Food Company purchased a mixer for RM34,000 on July 1, 2018. The mixer has an expected salvage value of RM2,000, and is expected to be working 100,000 hours over its estimated useful life of 8 years. Actual working hours were 10,000 in 2018, 18,000 in 2019 and 22,000 in 2020.

You are required to:

a) Compute the depreciation expense at the end of December 2020 using straight line method and unit of activity method.

b) Prepare the journal entry to record the purchase of the mixer on 1 July 2018, and depreciation expense for 2020 using unit of activity method.

c) Show the extract of Statement of Financial Position as at 31 December 2020 using straight line method.