1. On 1/1/23 Meganco purchased a new lathe for $40,000 installed. The physical life of the lathe is 10 years with a salvage value of $5,000 at the end of that time period. The lathe was purchase for a contract that will provide revenue to Meganco for 5 years. The lathe will be sold at the end of the contract for $10,000. Required: 16 Make the required journal entry on 12/31/23 and 12/31/24 assuming that the lathe is depreciated usina 200% double declinina halance. 2. Kenco is in the software development business. The company wants to purchase a new computer system that has an installed cash price of $25,000. Its current system was purchased 3 years ago for $15,000 and was being depreciated over 5 years using straight line deprecation with an estimated salvage value of $5,000. Required: 16 a. Assume Kenco was able to sell the old computer for $12,500 Make the required journal entry to record the sale. b. Assume Kenco was able to sell the old computer for $7,000 Make the required journal entry to record the sale