2 Question 1: 40 points 4 ABC Corporation has purchased machinery on January 1, 2024, and seeds to compare two depreciation methods: straight line and double declining balance 5 This machinery costs $400,000 and has an estimated useful site of four years, or 8,000 machine hours. At the end of four years, the machinery is estimated to have a residual value of $20,000 9 10 11 Requirements 1- Prepare depreciation schedules for straight line and double declining balance (20 points) 2At December 31, 2024, AC Company is trying to determine if it should sell the machinery. ABC Company will only sell the machinery if the company earns again of at least 56,000 For mach of the depreciation methods, what is the minimum amount that ABC Company will sell the machinery for in order to have a gain of $6,000) [ 20 points) 12 Question 2: 60 points 13 Mengon Company uses a perpetual inventory system. The January 2024 inventory information is as follows Assume cash purchases and sales 14 35 DATA 30 Date 171.01.2016 Description Inventory on hand Units Per Unit 1.000 $ 4 18.01.2016 19.01.2016 2015.01.2016 Purchase Sale Purchase 3.000 S 5 2.750 S 10 5.000 21 22.01.2016 Sale 4.500 $ S b 10 22 23 Requirements 1 Prepare a perpetual inventory record uning FIFO, LIFO, and weighted average inventory costing methods, and determine cost of goods sold and ending ineschandine inventory, (15 points)