Section B: Question 3. Depreciation methods Allow about 7 minutes to answer this question On 1 July 2016, Mobile Phones Ltd purchased a machine for making the metal cases for its mobile phones. The machine cost $5,000,000 and has an estimated useful life of 12 years, during which it can produce 2,400,000 metal cases. It is also estimated that the machine can be sold for about $200,000 to a scrap metal dealer in 12 years. The company's balance date is 31 December - this is the date on which depreciation expense is calculated and the financial statements are updated. Required: (a) What is the depreciation expense under the straight-line method on 31 December 2016? [Include your working.] 1 mark (b) Under the reducing-balance method, depreciation will be recorded as follows for the first four and a half years of the machine's useful life: Depreciation Depreciation Accumulated Carrying Date Rate Expense Depreciation Amount 01/07/2016 $5,000,000 31/12/2016 23.53% $ 588,250 $ 588,250 $4,411,750 31/12/2017 23.53% $1,038,085 $1,626,335 $3,373,665 31/12/2018 23.53% $ 793,823 $2,420,158 $2,579,842 31/12/2019 23.53% $ 607,037 $3,027,195 $1,972,805 31/12/2020 (A) (B) (C) (D) Calculate the values for (A), (B), () and (D) in the table above. [Include your working.] 2 marks (c) What is depreciation expense under the units-of-production method if 250,000 metal cases are produced in the year ending 31 December 2021? [Include your working.) 1 mark Type your answers into the text box below (or type into a document and then copy and paste into the text box below - paste answer NOW before continuing)