John Bennett purchased Motor Vehicle for the running of his business at a cost of $1,200,000 on January 1 2014 and started depreciating it over five years. Residual value was taken as $800,000.

At January 1 2017 a review of asset lives was undertaken and the remaining useful life was estimated at ten years. There was no residual value.

Calculate the depreciation charge, for the year ended 31 December, 2017 and subsequent years.

Show the ledger entries for the assets and the accumulated depreciation accounts for the number of years

(20 marks)