Unisoft Limited bought a Machine for $259,000 and the useful life of the machine is estimated to be 4 years. The salvage value of the machine at the end of its life span is expected to be $9,000. The estimated running hours of the machine are given below:

Year Running Hours

1 4,290

2 3,960

3 3,425

4 825

Calculate the annual depreciation for 3 years using the following methods of depreciation:

(i) Straight Line Method

(ii) Units of Use Method

(b) Briefly discuss the following accounting concepts that are used in the preparation of financial statements:

(i) Historical Cost Concept

(ii) Going Concern Concept

(iii) Accounting Period Concept