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vusalii Tops Ltd purchased a new machine on 1 October 2015 at a cost of S199500. The entity estimated that the machine has a residual

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vusalii Tops Ltd purchased a new machine on 1 October 2015 at a cost of S199500. The entity estimated that the machine has a residual value of S27900. The machine is expected to be used for 39,000 working hours during its 10 year life. Assume a 31 December year-end. Required a) Calculate the depreciation expense using the straight-line method for 2015 and 2016. b) Calculate the depreciation expense using the diminishing-balance method using a depreciation rate of 20% for 2015 and 2016. c) Calculate the depreciation expense using the units-of-production method for 2015, assuming the machine usage was 1800 hours. TT T Arial 3 (12pt) T. JE

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