Raj Ltd purchased a machine on 1t January 2019 for 100,000. Transporting the machine to its factory cost 1,600 and 1,000 was spent on installing it. Maintenance of the machine cost 750 in 2019 and the expenditure on maintenance increased by 200 in each of the following four years. The machine was expected to last until 31 December 2026 with a scrap (or residual) value at that date of 6,600. The company uses the straight-line method of depreciation. It provides for a full year's depreciation in the year of acquisition and none in the year of sale. The machine was sold for 34,000 on 30" June 2023. Required Explain briefly what you understand by the term "depreciation" as used by accountants. In what circumstances would straight-line be the most appropriate method to use for an asset? Give the following calculations () the depreciation charge for 2019; () the profit or loss on sale of the machine in 2023