1) Dale Cooper began business on 1 January 20X1, with a 31 December balance date. All figures are GST-exclusive. On that day he purchased a new factory machine for making dog food for $48,000 from Wind River Ltd. Freight of $600 and installation expenses of $400 were paid to get the machine into Dale’s factory and ready for use. Dale had to employ a repairman to get the machine operating correctly, as it was found to have been dropped accidentally by one of his employees on delivery, and needed a few things fixing and replaced as a result. The repairs and parts replaced cost $1,000. The machinery has an estimated life of 25,000 hours. The hours the machinery is estimated to be used annually are: Year 1 2,000 hours Year 2 3,000 hours Year 3 4,000 hours Year 4 5,000 hours Year 5 4,500 hours Dale also had a Nissan Maxima turbo vehicle, which he decided to register as a business vehicle, at a cost of $35,000 on 1 January 20X1. a) Show the appearance of the Fixed assets section of the Balance Sheet as at 31 December 20X5, assuming: ▪ actual usage equals estimated usage for the machine ▪ the units of use method is used ▪ the vehicle is depreciated at 20% diminishing value. Round all amounts to the nearest whole dollar. Include any relevant subtotals. b) Show the appearance of the relevant section of the Income Statement for 31 December 20X5, assuming that: ▪ actual usage equals estimated usage ▪ Dale uses only one ‘Operating expenses’ section for all depreciation amounts ▪ other operating expenses are: Power $15,200, Materials $6,500, and Factory wages $40,000, which remain constant each year. Include any relevant subtotals. c) Suppose Dale had the option of choosing the diminishing value method for the machinery depreciation at a rate of 20%, or straight-line depreciation with an estimated residual value of $5,000 and a useful life of 10 years. Recalculate annual depreciation for years 20X1–20X5, and the accumulated depreciation as at the end of year 31/12/20X5. d) Assuming that any of the 3 depreciation methods (units of use, diminishing value, and straight line) as above are acceptable for tax purposes, state 1 advantage of using each of the 3 methods.