Stacey Ltd purchased a new machine on 1 September 2019 at a cost of $206,100 (excluding GST).

The entity estimated that the machine has a residual value of $29,700 (excluding GST).

The machine is expected to be used for 36,000 working hours during its 8 year life.

Assume a 31 December year-end.

Required

(a) Calculate the depreciation expense using the straight-line method for 2019 and 2020. (b) Calculate the depreciation expense using the diminishing-balance method and a depreciation rate of 25% for 2019 and 2020. (c) Calculate the depreciation expense using the units-of-production method for 2019, assuming the machine usage was 1,820 hours. (d) On 31 December 2020 the company discarded a delivery truck that was purchased on 1 January 2016 for $24,200 cash (including GST of 10%) and was depreciated on a straight line basis with a useful life of 6 years and a residual value of $2200 (excluding GST). What was the profit or loss on the scrapping of the truck?