Smith and co decides to replace one of its machines. On 1July 2019 they purchased a new machine for $1,2,00,000 (inclusive of GST). at the time of acquirng the machine, Smith and Co estimate that it would have an effective life of 10 years before it needed to be replaced. Subsequently a new machine with 15% improved efficiency became avaliable and on the 30 June 2020 smith and co decided to sell the original machine for $990,000 (inclusive of GST) and purchsed a new machine.

1. clculate the decline in value for 2019-20 income year using both the prime cost method and diminishing Value method

2. calculate the balancing adjustment to be included in the 2019-20 income year