On April!, 2004, a business purchased a machine costing $224 000. The machine has a life expectancy of approximately 40 months. At the end of that time the machine is expected to have a trade-in value of $24 000. The financial year of the business ends on December 31, each year.

(i) Use the formula for calculating annual depreciation on the 'Straight-line Method' to determine the annual depreciation on the machine. ( 2 marks)

(ii) Calculate the depreciation charge at the end of the first year. ( 1 mark)

(iii) Show the depreciation account for the first two years.