1) A company purchased a new machine for producing wooden building trusses. The new machine has a fair market value of $600,000, a useful life of six years, and a salvage value of $35,000. To purchase the new machine the company paid $375,000 in cash and traded in old equipment with a book value of $15,000. The machine will be depreciated using the units of production method. a) (5 points) What is the cost basis of this new machine for depreciation purposes? b) (5 points) If the machine can make 20.000 trusses per year, what is the cumulative depreciation amount through year 2? c) (5 points) If the machine is sold for $100.000 after making 70.000 trusses, what is the gain (loss) on the disposal of the machine