After the financial statements for the year ended 31 December 2011 had been prepared, ABC Ltd changed its method of depreciation of machinery in order to align depreciation with the actual economic benefits derived from the depreciation of assets. Machinery will from 2011 be depreciated at 20% per annum, using the reducing balance method. At 31 December 2010 the machinery account was as follows: Cost $100 000 Accumulated depreciation $50 000 Carrying amount $50 000 No machinery was bought or sold in 2010.

Required (a) Calculate deprecation for the year ended 31 December 2011. (b) Calculate depreciation for the years 2012 and 2013.