Your organisation has purchased a new photocopier at a cost of $17,000. The purchase was made in July so there is no need to calculate depreciation for part of the first year. The copier will be outdated and written off after five years at a book value of zero.

Describe how to use the diminishing value method and the prime cost method, and detail the cost each year to be allocated for reporting purposes and show the book value during each year.

Show your results in a table with comparisons between the two methods:-

	Diminishing	value	Prime	Cost
	Cost Pa	Book Value	Cost Pa	Book Value
At Purchase
Year 1
Year 2
Year 3
Year 4
Year 5

Please type up your answer and explain how did you come up with the calculation!