Reference no: EM132690639

Clever Craig purchased a new excavator for his landscaping business on 1 jan 2017 at the cost of $107800 GST exclusive. The estimated value is $8000. the excavator has a useful life of 10 years and the business expects to use it for 20,000 hours last term, used for 1,500 hours in year ; 2,200hours in year 2; 1,900 hours in year 3; 2,400 hours in year4; 1,600 hours in year 5. the ends of financial year is 30 june.

Problem 1: Make a depreciation schedule for the first 3 years ending 30 June using the diminishing balance depreciation method. Assume the depreciation rate to be doubles the straight line rate.