December and uses the straight-line method of depreciation. On 1 January 2012 the business
bought a machine for £10,000. The machine had an expected useful life of four years and an
estimated residual value of £2,000. On 1 January 2013 the business bought another machine
for £15,000. This machine had an expected useful life of five years and an estimated residual
value of £2,500. On 31 December 2014 the business sold the first machine bought for £3,000.
Show the relevant income statement extracts and statement of financial position extracts for the
years 2012, 2013 and 2014.