Question 17. Consider the following non-current assets: Factory: Initial cost 250,000, estimated useful lifetime 25 years, no residual value. Two vans: Initial cost 15,000 each, estimated useful life 6 years, no residual value. Machinery: Initial cost 122,000, estimated useful life 11 years, estimated residual value 13,750. The factory was bought in 2000. The vans and the machinery were all bought at the beginning of 2014. The factory and the vans are depreciated using the straight line method. Depreciation on the machinery is worked out using the reducing balance method. a) Calculate the company's total depreciation charge for 2014. (5 marks) b) Discuss the difficulties associated with accounting for the depreciation of property, plant and equipment in a company's financial statements