A. On 2 January 2016, Wendy Ltd purchased a machine for $55 000 plus GST with a useful life of 5 years and a residual value of $8 000. In order to keep the machine running properly, the company has performed regular maintenance and repairs each year since its acquisition. On 30 June 2019, ordinary repairs amounted to $880 plus GST. The company has a 31 December financial year end. On 3 January 2020, Wendy Ltd decided to completely overhaul the machine's major operating parts at a cost of $9 000 (plus GST), after which the machine is expected to have a useful life of 3 remaining years and a revised residual value of $4 000. Wendy Ltd uses the straight-line depreciation method. The carrying amount of the parts replaced was considered to be $490. (13 Marks) Required: Prepare general journal entries to record: 1. the purchase of the machine on 2 January 2016 (3 marks) 2. the day-to-day repairs on the machine in 2019 (2 marks) 3. the overhaul of the machine on 3 January 2020 (6 marks) 4. the depreciation on the machine for the year ended 31 December 2020 (2 marks) B. What are the two different types of theories in accounting? Illustrate your answer with one example for each theory. (6 marks) C. What are the three hypotheses derived from agency theory about accounting policy choice? Explain how these hypotheses affect managers. (6 marks)