$

Machinery at cost 44366.67

Building at cost 139583.33

The building is expected to have a useful life of ten years and an estimated residual value of $42,500. The machinery is expected to have a useful life of 8 years and be used for 26,000 hours and an estimated residual value of $3,766.67. The machine is expected to be used 3,000 hours in first year, 4,000 hours in year 2, 5000 in year 3, 5,500 in year 4 and 2,500 in year 5 and 2,000 hours in each of the remaining 3 year.

Q)Calculate the annual depreciation expense using all 3 methods of depreciation with respect to the building and machinery for each of the years ending 30 June 2015, 2016, 2017. For the building and machinery select the method of depreciation you would advise them to use and justify your selection.