On 15 March 2019, Mythical Pty Ltd purchased two items of equipment that were to be installed and tested in the company factory for cash. The following costs, GST inclusive, were incurred in this process.

	Equipment A $	Equipment B $
Purchase Price	108,350	94,270
Installation and testing cost	4,950	2,310
Salary of employees installing and testing the equipment	2,420	1,870
Payments for the damage to the factory wall while installing the equipment	880	550
Payments for the repair of the component of the equipment in the process of testing	1,870	-

The company accountant decided to determine depreciation charges for the assets based on different depreciation methods. The following details are provided by the accountant;

	Equipment A	Equipment B
Useful Life	5	80,000 hours
Residual Value	$3,800	$2,500
Depreciation Method	Sum-of-the-years-digits	Units of production

During 2019, Equipment B was idle, and during the year ended 30 June 2020, it was used for 5,000 hours.

Required:

1. Calculate the initial cost to be recorded for each type of equipment. 2 marks
2. Prepare the appropriate journal entries to record all costs incurred on

15 March 2019. 4 marks

Calculate the depreciation expense for the two items of equipment for the year ended 2019 and 2020. Assume that the end of financial year is 30 June.