11 Question 5 (9 marks) (16 minutes) Gyra Inc. acts as sales representative for a number of small companies. The owner of the company has decided to change from leased vehicles to company-owned vehicles for its sales representatives. On December 31, 20x2, the company plans to purchase 5 vehicles at a cost of $33,600 each. Each vehicle has an estimated residual value of $4,500, a useful life of 6 years, and will be driven a total of 150,000 kilometres. Spyro, the owner of the company, has also decided to provide the company's 5 sales representatives with new computers. Spyro has found someone willing to buy the 5 old computers now, for a total of $2,500 cash. The 5 old computers have a total cost of $25,000 and total accumulated depreciation of $20,000, after recording depreciation expense up to December 31, 20x2. Required- a. b. C. d. Calculate the first year's total depreciation expense on the new vehicles, assuming the company chooses to use the straight-line method of depreciation. (1) Calculate the depreciation expense on the new vehicles, for the years 20x3, 20x4 and 20x5 assuming the company chooses to use the diminishing balance method of depreciation at a rate of 33 1/3%. (2) Assume that one of the vehicles is sold on December 31, 20x7 for $3,000. What is the gain or loss on the sale fo the vehicle? Calculate the first year's total depreciation expense on the new vehicles, assuming the company chooses to use the units-of-production method of depreciation and the 5 new vehicles are expected to be driven a total of 100,000 kilometres in the year ended December 31, 20x3. Prepare the journal entry that would be made to record the sale of the old computers.