Sunshine Plantations Pty Ltd purchased machinery for its manufacturing process on 1 April 2019. The machinery cost $1,960,000. Sunshine Plantations estimates that the machinery has a useful life of 6 years, and will have a $313,600 residual value. Assume Sunshine Plantations reporting period ends on 31 December. Important:

a. Using straight-line depreciation, estimate (1) the depreciation expense to be recorded in the statement of profit or loss and (2) the carrying amount to be recorded in the balance sheet for the year in which the machine was purchased and the subsequent year.

b. Using diminishing balance depreciation with a 30 per cent depreciation rate, estimate (1) the depreciation expense to be recorded in the statement of profit or loss and (2) the carrying amount to be recorded in the balance sheet for the year in which the machine was purchased and the subsequent year.