On July Donkey Company bought a new multifunctional photocopier from Basic Company for $ The estimated useful life of the photocopier is years, with a residual value of $ The estimated output is hours. The yearend date of the Company is December.

The machine has been used for hours in Year and hours in Year

Required:

a Compute the depreciation expenses on this machine for the Year and respectively by using the following methods. Round the amount to the nearest dollar and show your workings:

Year Year i

Straightline to the nearest fullmonthii

declining balance with halfyear conventioniii UnitsofOutput,,

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b On January the following additional expenditures were spent on this photocopier after it was put into service. After the upgrade, the useful life is extended from years to years and no residual value. Calculate the revised annual depreciation for the Year if Donkey Company applies Straightline depreciation method to the nearest full month Round your answer to integer.

i Maintenance services fee of $ was paid to the Basic Company.

ii Upgrading the electronic panel of the photocopier for $ to improve the printing efficiency.

iii Purchase a spare part for $ to replace the old one.

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