Martin Brown runs a housekeeping business. On 1 January 2014, He purchased a Machinery costing $200,000. The life span of the machinery was for 5 years He depreciates it at 20% straight line. A few years later he decides to replace it with one which has an enclosed cabin for when it rains. He sells the Machinery to a friend, John for $150,000 on 31 December 2017.

Required:

Calculate the depreciation amount and show the disposal account for the Machinery 31 December 2017.

(20 marks)