On January 1, 2013, ABC S.A. acquires a machine for 30 000. Delivery fees for the machine amount to 2 000. The cost of installing the machine amount to 3 000. All payments are made in cash on the same date. The machine is delivered and installed on the same day and it is immediately available for use.

The residual value is 5 000. The machines useful life is 5 years. The machine is measured using the cost model and the depreciation rate is 35%. At the end of its useful life, the machine is sold for 6 000.

Determine the cost of the machine, the depreciable amount and the depreciation expense for the years 2013 to 2017. The financial year ends on 31 December.

1. Calculate the depreciation according to the reducing balance method.

2. Show all accounting entries.