What are the chief characteristics of fixed assets? Explain the terms: (i) Depreciation expenses (ii) Depletion charge (iii) Amortization Unitech Construction Company purchased an earthmoving equipment for Rs.20,00,000 (Twenty Lakh). The equipment is expected to have useful life of six years or 15,000 hours (Fifteen thousand hours), with an estimated residual value of Rs.2,00,000 (Two Lakh) at the end of life. The equipment has been used for 2000 hours in the first year of its life. Compute depreciation expense for the first year using each of the following methods: (1) Straight line method (ii) Diminishing balance method (Written down value method) (iii) Sum of years digits (iv) Production units count used