Rigby Ltd recently paid $435 000 for new equipment. Management policy is to keep equipment for a period of 6 years. The estimated residual value is $60 000. As a trainee accountant, the manager of Rigby Ltd has asked you to prepare a schedule to compare the impact alternative depreciation methods will have on the net profit of the company. Ignore GST.

Required

Prepare a schedule, using the template below, to present the annual depreciation expense and end-of-year carrying amount for the expected life of the equipment on the basis of:

1. Straight line depreciation
2. Diminishing balance method