On 1 July 2021 ABC Ltd acquired a machine at a cost of $100,000. At acquisition the machine was expected to be in operation for four years, after which it would have no residual value. Required: (a) Calculate each period's depreciation using the declining-balance method with a depreciation rate of 40 percent. Prepare journal entry to record depreciation of the machine for the year ended year ended 30 June 2022. (10 marks) Page 2 of 7 (b) Calculate each period's depreciation using the sum-of-digits method. Prepare journal entry to record depreciation of the machine for the year ended year ended 30 June 2022. (10 marks)

On 1 July 2021 ABC Ltd acquired a machine at a cost of $100,000. At acquisition the machine was expected to be in operation for four years, after which it would have no residual value. Required: (a) Calculate each period's depreciation using the declining-balance method with a depreciation rate of 40 percent. Prepare journal entry to record depreciation of the machine for the year ended year ended 30 June 2022. (10 marks) Page 2 of 7 (b) Calculate each period's depreciation using the sum-of-digits method. Prepare journal entry to record depreciation of the machine for the year ended year ended 30 June 2022. (10 marks)