Question - Coconut Plantations Pty Ltd purchased machinery for its manufacturing process on 1 March. The machinery cost $455,000. Coconut Plantations estimates that the machinery has a useful life of six years, and will have a $55,000 residual value. Using straight-line depreciation, estimate the depreciation expense to be recorded in the income statement for the year in which the machine was purchased and the subsequent year assuming Coconut Plantations's reporting period ends on 31 December. (Use months (not days) when calculating your answers. Round answers to 0 decimal places, e.g. 5,275.)
Depreciation expense for the year in which the machine was purchased =
Depreciation expense for the subsequent year =