On 1 January 20X1, Baking Goods Pte Ltd purchased a large commercial oven for $150,000 for use in its commercial kitchen. The useful life of the commercial oven was four years with a residual value of $6,000.

Required:

Apply FRS 16 Property, Plant and Equipment and compute the depreciation charges and net book values of the commercial oven for each of the four years using the:

(a) Double-declining method.

(b) Straight-line method.