RM 250,000 15.000 5.000 Cost of the machinery Site inspection and preparation Delivery Charge Insurance during delivery Installation cost 2 years maintenance contract 250 3.750 25,000 The newly purchased machinery has nine (9) years useful life, and at the end of the 9th year it can be scrapped for RM 4,000. The management was considering using either the straight line method, or the reducing balance method (20% rate). To assist the management, you are required to CALCULATE the annual depreciation charge, the cumulative depreciation and the book value of the machinery for the year ending 31st December 2018, 2019, and 2020 using: i. Straight line method (6 marks) ii. 20% reducing balance method