Asset: Machine 101

Date acquired: 1.7.2019

Cost: $36,000
Salvage value: 0
Effective life (in years) 8

Method Prime cost

Period Financial Year: Depreciation expense Accumulated depreciation
1 2019-20 $4,500.00 $4,500.00
2 2020-21 $4,500.00 $9,000.00
3 2021-22 $4,500.00 $13,500.00
4 2022-23 $4,500.00 $18,000.00
5 2023-24 $4,500.00 $22,500.00
6 2024-25 $4,500.00 $27,000.00
7 2025-26 $4,500.00 $31,500.00
8 2026-27 $4,500.00 $36,000.00

Method Diminishing value

Period Financial Year: Depreciation expense Accumulated depreciation
1 2019-20 $9,000.00 $9,000.00
2 2020-21 $6,750.00 $15,750.00
3 2021-22 $5,062.50 $20,812.50
4 2022-23 $3,796.88 $24,609.38
5 2023-24 $2,847.66 $27,457.03
6 2024-25 $2,135.74 $29,592.77
7 2025-26 $1,601.81 $31,194.58
8 2026-27 $1,201.35 $32,395.94
 Comparison of Depreciation Methods
$35,000.00
Book value (end of year) Prime cost Diminishing value
$30,000.00
$31,500.00 2016 $31,500.00 $27,000.00
$27,000.00 $25,000.00 2017 $27,000.00 $20,250.00
$22,500.00 $20,000.00
2018 $22,500.00 $15,187.50
$18,000.00 2019 $18,000.00 $11,390.63
$13,500.00 $15,000.00 2020 $13,500.00 $8,542.97
$9,000.00 $10,000.00 2021 $9,000.00 $6,407.23
$4,500.00 2022 $4,500.00 $4,805.42
$5,000.00
$0.00 2023 $0.00 $3,604.06
$0.00
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27

Prime cost Diminishing value

Book value (end of year)
$27,000.00
$20,250.00
$15,187.50
$11,390.63
$8,542.97
$6,407.23
$4,805.42
$3,604.06
Methods

2024-25 2025-26 2026-27

value