2. (a) "Depreciation is a process of asset valuation"-Do you agree? Explain with example. 3 (b) Darling earth Company has decided to sell one of its old manufacturing machines on September 30, 2016. The machine was purchased for $100,000 on January 1, 2012, and was depreciated on a straight-line basis for 10 years assuming no salvage value. If the machine was sold for $46,000. 7 i. ii. iii. iv. what was the amount of the gain or loss recorded at the time of the sale? Pass journal entry Prepare the plant assets section of Starkey's balance sheet at December 31, 2016 Pass journal entry If the machine is exchanged with another machine with market value of $40,000 on September, 2016. Pass journal entry if the machine is retired at the end of the useful life. V