Problem One: Ignore GST. On 13 December 2017, Bellamy Ltd acquired equipment costing $60,000. The equipment was ready for use on 4 January 2018. It was estimated that this equipment would have a useful life of 8 years and a residual value of $4,000. The straight-line method of depreciation was considered to be the most appropriate. Bellamy Ltd follows the rule that depreclable assets ready for use on the 15th of the month or earlier should be deprecated for a full month; if ready for use after the 15th, then depreciation should start the following month. During 2020 (the third year of the equipment's life), the company's engineers reconsidered their expectations, and estimated that the equipment's useful life would probably be 10 years (in total) instead of 8 years. The estimated residual value was not changed at that time. However, during 2023 the estimated residual value was reduced to $2,000. Required: a) Complete the table that follows with the understanding that the change in useful life would be effective for 2020 depreciation going forward and the change in estimated residual value would be effective for the year 2023 calculations going forward. Assume an annual accounting period ending on 31 December. Depreciation Accumulated Year Expense Depreciation 2018 2019 2020 2021 2022 2023 2024 b) What will be the balance in the Accumulated Depreciation account at the end of the equipment's useful life? What will be its book value? c) Now assume that the declining balance method (at twice the straight-line rate) was used for the first two years, and that the business switched to the straight-line method for 2020 and beyond. Recall that the original estimated useful life was eight years, with a residual value of $4,000. Also recall that the change in useful life to 10 years in total is effective from 2020 going forward. Complete the following table under these revised facts. Round calculations to two decimal places. Depreciation Accumulated Year Expense Depreciation 2018 2019 2020 Problem Two: 1) PP & E, except for land, is deprecated under both the cost and fair value (revaluation) models. 2) Investment property is depreciated under the cost model but not under the fair value model. 3) PP & E held for sale is not depreciated at all. Discuss whether these Inconsistencies can be justified with logic