A factory owner buys a tractor and a lorry. A tractor costs £1,060,000 and is estimated to have a life of 4 years and a scrap value of £20,000. Using the equal installment method
1. Calculate the percentage of the cost to be written off each year.
2. Prepare a depreciation schedule that shows:
(i) the annual depreciation for each year
(ii) the accumulated depreciation for each year
(iii) the book value at the end of each year.