a) On January 1, 2021, Fatema & Company purchased a machine for use in its production process. The cash price of the machine was Tk. 600,000. Related expenditures included: sales tax Tk. 10,000, shipping costs Tk. 10,000, insurance during shipping Tk. 8,000, installation and testing costs Tk. 15,000, and Tk. 9000 of oil and lubricants to be used with the machinery during its first year of operation. The company estimates that the useful life of the machine is 4 years with a Tk. 5,000 salvage value remaining at the end of that time period

Instruction: The journal entry to record its purchase on January 1, 2021.

(b) Muaj & Company owns a machine that cost Tk. 100,000 when purchased on June 1, 2018. It has been depreciated using the double-declining balance method assuming no salvage value and an estimated useful life of 5 years. The company uses the calendar year (January-December) to prepare the financial statements.

instruction: Prepare Muaj & Companys journal entries to record the sale of the equipment in the following four independent situations:

Sold for Tk. 20,000 on January 1, 2021 Sold for Tk. 2,000 on June 1, 2021