Henry Ltd purchased TWO machines for its growing business. Information relating to the machines is summarised below.

Machine	Purchased	Cost	Residual value	Useful life	Depreciation method
1	1/1/2019	$205,000	$35,000	-	*Units-of-production
2	1/1/2019	$80,000	$5,000	10 years	Straight-line

*It is expected that Machine 1 will produce total of 20,000 units. Actual units produced in the first 2 years were: 7,500 units in 2019 and 3,500 units in 2020.

The reporting period ends on 31 December. Ignore GST.

Required:

a) Calculate the amount of accumulated depreciation as at 31^st December 2020 for machine 1. (1 mark)

b) Calculate the carrying amount as at 31^st December 2020 for machine 2.