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Question 3 Depreciation PART (1) A manufacturer purchased a machine for 74,000 on 1 January...

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Question 3 Depreciation PART (1) A manufacturer purchased a machine for 74,000 on 1 January 2016 It had an estimated useful life of 4 years and an estimated residual value of 10,000. a) Calculate the depreciation charge for each year using the (1) "straight line" method and (ii) the reducing balance" method. A depreciation rate of 39% is to be used for the "reducing balance" method and calculations should be rounded to the nearest euro. b) Show the depreciation expense account and the accumulated depreciation account for each year from 2016 to 2019 inclusive for the straight line" method Show the (i) machinery, (ii) accumulated depreciation and (iii) disposal - machinery accounts for 2020 if the firm sold the machine on 1 January 2020, for 10,750, having applied the "straight line" method. (You may assume that the manufacturer had no other machinery and therefore no depreciation needed be charged in 2020.) Show the (i) machinery, (ii) accumulated depreciation and (iii) disposal - machinery accounts for 2020 if the firm sold the machine on 1 January 2020, for 9,100, having applied the "straight line" method. (You may assume that the manufacturer had no other machinery and therefore no depreciation needed be charged in 2020) c) d)

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