Asset purchased on the 1^st July 2017

• Straight-line method example: Assuming that a photocopier costs $40,000 and is expected to last for 4 years with a trade-in value of $4,000.

Find the annual amount of depreciation for the 4 years using a depreciation table.

• Reducing balance method example: Assume that a photocopier costs $40,000 and the book value is to decrease by 25% on the reducing balance.

Prepare a table showing the depreciation charges per annum for 4 years.

• Units of use method example: Assume that a photocopier is purchased for $40,000 with a residual value of $4,000 and is expected to be used for 4 years. The total number of copies over its life are expected to be 800,000 copies.

ie. Year 1: 400,000 copies, Year 2:`200,000 Year 3: 150,000 copies and Year 4: 50,000 copies.