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PLEASE ANSWER BRIEFLY LG Berhad operates four types of machines. Because of their varied functions, management has decided that four different depreciation methods will be

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PLEASE ANSWER BRIEFLY

LG Berhad operates four types of machines. Because of their varied functions, management has decided that four different depreciation methods will be used to determine depreciation charges. Information on the equipment is summarised as follows: Date Scrap Machin acquire Cost value Depreciation e type d (RM) (RM) Useful life method 1 1/7/16 95 400 10 000 4 years Diminishing balance 2 1/7/16 148 000 15 000 6 years Sum-of-years' digits 3 1/1/17 27 500 5 500 10 years Straight-line 4 15/4/18 39 700 4 600 20,000 hours Hours of production The depreciation rate used for machine type 1 is 25%. Use of machine type 4 was 1,200 hours in the year ended 30 June 2018; 3,200 hours in 2019, and 2,600 hours in 2020. Required: Assuming the financial year ends on 30 June each year and that depreciation is recorded to the nearest month, calculate the depreciation charges for year ended 30 June 2017, 2018, 2019 and 2020 by preparing a schedule with the following headings. Show all workings. Depreciation expense for year ended 30 June Equipment type 2017 2018 2019 2020 1 2 3 AWN (20 marks)

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