Exercise 14.2 Cost and annual depreciation GST version On 1 July 2022, Kirby Ltd purchased a machine with a list price of $351 500. Due to their business relationship, the supplier provided a trade discount of 10% plus GST and credit terms of 2/10, n/30. Payment was made within the discount period. Freight costs of $8910 (GST Inclusive) and installation costs of $8712 (GST Inclusive) were also paid. The machine has a useful life of 5 years and a residual value at the end of its useful life of $20 000. Required (a) Determine the amount that should be debited to the machinery account and prepare a general journal entry to record the purchase, assuming a financial year ending 30 June. (b) Determine the amount of depreciation expense for each of the 5 years ending 30 June assuming use of: i. the straight-line depreciation method ii. the diminishing balance method of depreciation. (c) Prepare a journal entry to record depreciation expense for the year ending 30 June 2023 using the diminishing balance method of accounting for depreciation. (L02 and L05)