Kindly answer following questions. (25 marks)

Question 3 On 1 January 2017, Ge Berhad bought a new machine and made the following payments in relation to it: RM Costs as per supplier's list 60.000 Agreed discount 20% Delivery charge 4,000 Installation charge 3,000 Maintenance charge 15,000/year Additional component to increase capacity 5,000 Replacement parts 6,000 Cash discount for early payment 10% Expected useful life of the machinery is four years. The scrap value of the machinery is RM12,000. Financial year end for Ge Berhad is on 31 December each year. SA The number of units of goods produced by the machinery for each year is as below: 2017 - 50,000 units 2018 - 40,000 units 2019 - 55,000 units 2020 - 35.000 units a Required: State and justify the cost figure which should be used as the basis for capitalisation of the machinery. (8 marks) b. Calculate the depreciation expense for the year 2019, using each of the following methods: i. straight-line (2 marks) units-of-production (2 marks) iii. reducing-balance by using the rate of 30% (4 marks) iv. sum-of-years-digits (4 marks) C Explain the term depreciation and the reason why it is necessary to provide for depreciation