Calculating straight-line, diminishing-balance and units-of- production depreciation

Beta Ltd purchased a new machine on 1 October 2018 at a cost of $245, 000. The entity estimated that the machine has a residual value of $30, 000. The machine is expected to be used for 35, 000 machine hours during its 10-year life. Assume a 31 December year-end.

Required

Calculate the depreciation expense using the following method using the year indicated.

a. the straight-line method for 2018 and 2019. (4 marks)

b. the diminishing balance method using double the straight-line rate for 2018 and 2019.(4 marks)

c. the units of production method for 2018, assuming the machine usage was 1800 hours. (2 marks)