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Gerald green purchased a new excavator for his landscaping business on 1 april 2019 at the cost of $114500 GSt exclusive. The estimated residual value
Gerald green purchased a new excavator for his landscaping business on 1 april 2019 at the cost of $114500 GSt exclusive. The estimated residual value is $9500/ the excavator has use life of 10 years and the business expects to use it for 25000 hours. It was used for 1800 hours in year 1; 2600 hours in year 2; 2100 hours in year 3; 2400 hours in year 4; 1900 hours in year 5. The end of financial year is 30 june. a) Calculate depreciation using the straight line method for 2019 and 2020 b) Prepare a depreciation schedule for the first 3 years ending June 30 using the diminishing balance depreciation method. Assume the depreciation rate to be double the straight line rate. c) Calculate depreciation using the units of production method (based on hours) for 2019 and 2020)
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