On 1 April 2013 a business purchased a machine costing £112,000. The machine can be used for a total of 20,000 hours over an estimated life of 48 months.
At the end of that time the machine is expected to have a trade-in value of £12,000. The financial year of the business ends on 31 December each year. It is expected that the machine will be used for:
4,000 hours during the financial year ending 31 December 2013
5,000 hours during the financial year ending 31 December 2014
5,000 hours during the financial year ending 31 December 2015
5,000 hours during the financial year ending 31 December 2016
1,000 hours during the financial year ending 31 December 2017