Assignment 5 Problem Plant & Machinery is purchased on 1 January 2011. Information relating to the asset is as follows: $100,000 - 10.000 $10,000 Purchase price Cost of installation $10,000 Residual Value estimated at the time of acquisition Residual Value revised estimate on 1 January 2012 Useful Life estimated at the time of acquisition Useful Life revised estimate on 1 January 2013 10 years 8 years CASE 1: Calculate depreciation expense using straight line depreciation for the income statement for the years ended 31 December 2011, 2012, 2013 & 2014 Year ending 31 dec Annual depreciation Accumulated depreciation Book value 2011 2012 2013 2014 CASE 2: Calculate depreciation expense using reducing balance depreciation for the income statement for the years ended 31 December 2011, 2012, 2013 & 2014 D 2014 Depreciation 50% Year ending 31 dec Annual depreciation Accumulated depreciation Book value 2011 2012 2013 2014 if the company sells the PPE for $70,000 on Dec 31, 2014 calculate the profit/loss in CASE 1: CASE 2