1. Asset Acquisition, Cost Allocation and Disposal At the beginning of the year, Chemical Control Corporation bought three used machines from Radial Compression Incorporated. The machines immediately were overhauled, installed, and started operating. Because the machines were different, each was recorded separately in the accounts Cost of the asset Installation costs Renovation costs prior to use Annual Maintenance after production began500 Machine A $10,000 1,600 600 Machine B S38,100 2,100 1,400 400 Machine C $22,000 700 1,600 700 The three machines were using different depreciation methods as follows Machine Depreciation Method Straight-line Activity-based method Estimated Life Residual Value $1,000 2,000 years 33,000 hours (1st year 10,000 hrs 2nd year 8,000 hrs 3rd year 15,000 hrs) years Double-declining-balance 2,400 Q1. Compute the acquisition cost of each machine Q2. Calculate depreciation expense, accumulated depreciation and book value for Machine A in year 1 and year 3; Machine B in year 2; and Machine C in year 3 3. Give the journal entry to record depreciation expense for year 1 and year 2 for Machine A and Machine C Q4. Assuming the company sells Machine A at the end of year 3 for $4,000. Does the company have a gain or loss fronm the sale? How much? Prepare journal entry to record this sale Q5. Assuming the company retires Machine A at the end of year 4. Does the company have a gain or loss from the retirement? How much? Prepare journal entry to record this retirement