Carpet Ltd purchased machinery on 1 January 2018, at a cost of $400 000. The estimated useful life of the machinery is 4 years, with an estimated residual value at the end of that period of $40 000. The entity is considering different depreciation methods that could be used for financial reporting purposes for the year ended 31 December 2018. calculate deprection rate from formula= 100-(1 ns/c)

Required

(a) Prepare separate depreciation schedules for the machinery using the straight-line method, and the diminishing-balance method. Round to the nearest dollar.

(b) Which method would result in the higher reported profit in 2018? In the higher total reported profit over the 4-year period?