Problem
A pizza restaurant purchased a pizza oven for $14,300 (GST inclusive i.e. $13,000 plus $1,300 GST) on 1st July 2016. The oven as an estimated residual value of $1, 100 (GST inclusive i.e. $1,000 plus $100 GST). The diminishing balance method is used with a depreciation rate of 40% per annum. What is the depreciation expense for the year ending 30th June 2018 (i.e. at end of the second year of its life)?