PSA8.7 Calculate depreciation under different methods. 04 In recent years Button Ltd has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information con- cerning the machines is summarised in the table below. Residual Useful life in years) Depreciation method Machine Cost Acquired 1 Jan. 2015 1 Jan. 2016 1 Jan. 2016 value $10 500 9000 6000 10 2 3 38 400 26000 Straight-line Diminishing-balance Units-of-production 5 Usingimes the straight-line rate For the units-of-production method, total machine hours are expected to be 10000. Actual hours of use in the first 3 years were: 2016, 1000; 2017, 3000; and 2018, 4000 Required (a) Calculate the amount of accumulated depreciation on each machine at 31 December 2018. (b) For Machine 3 in 2018, which depreciation method is the preferred method for tax pur- poses? Explain why. (c) If you are the manager of Button Ltd and your bonus is linked to profit of the company. which depreciation method do you prefer for Machine 3 in 2018? Explain why in point form