5. Depreciation (26 marks) Assume that at the beginning of Year 1, Sweet Chocolate Factory purchased a machine at a cost of $85,000. The Company expects that machine to be used for 50,000 hours and to have a residual value of $5,000. Sweet Chocolate Factory expects the machine to be used 15,000 hours the first year, and 12,000 hours each year during years 2 and 3, and 11,000 hours the last year (Year 4). 1) Complete depreciation table using unit-of-production method for Year 1 and Year 2. (14 marks) Calculate depreciation per hour: Net Book Depreciation Accumulated Net Book Value IHL Expense Depreciation Value Yearl Year21 2) At the end of Year 2, Sweet Chocolate Factory sold the machine for $40,000. Record the sale of the machine on December 31, Year 2. (12 marks) Date General Journal Debit Credit Dec 31, Year 2