Question 1 A company purchased a machine for R18 500 that had an associated freight and setup cost of R2 500 . The estimated life of the machine is 5 years and its book value will be R1 000 . REQUIRED: Prepare the company's depreciation schedule using the diminishing balance method. Question 2 XYZ Ltd purchased a heavy duty printing machine on 1st of January 2010 for R49 000. Transport costs amounted to R6 000 and installation costs were R7 500. The machine is expected to be useful for is 4 years and the company estimated it will have a residual value of R2 500 . REQUIRED: If the printing machine it is expected to produce 40000 copies in its 1 st year of use, 45 000 in its \\( 2 \\mathrm{nd}, 65000 \\) in its \\( 3 \\mathrm{rd} \\) and 50000 in its 4 th, construct a table to illustrate the units of production schedule depreciation of the printing machine. (Show opening carrying value, units of production, depreciation per unit, depreciation amount, accumulated depreciation and closing carrying value for each year). Question 3 A firm bought a machine for R20 000 which is expected to be used for 5 years and then sold for R2 000 . What is the annual amount of depreciation if the straight line method is used? Question 4 A machine cost R25 650 depreciates to a scrap value of R500 in 10 years. Calculate the book value at the end of the sixth year if the reducing balance method of depreciation is used