Assignment #3 Question 1: Partial year's depreciation; alternative methods; exchange/disposal of PPE 1 Videotron Lte completed the following transactions involving printing equipment. Machine 6690 was purchased for cash on May 1, 2020, at an installed cost of $72.900. Its useful life was estimated to be four years with an $8.100 trade in value. Straight-line depreciation was recorded for the machine at the end of 2020 and 2021. On August 5. 2022, it was traded for Machine 6691, which had an installed cash price of $54.000. A trade-in allowance of $40,500 was received and the balance was paid in cash. The new machine's life was estimated at five years with a $9.450 trade-in value. The fair values of each December 31 of Machine 6691's life. On February 1, 2025, it was sold for $13.500. Machine 6711 was purchased on February 1, 2025. at an installed cash price of $79.650. It was estimated that the new machine would produce 75,000 units during its useful life, after which it would have an $8.100 trade-in value. Units-of-production depreciation was recorded on the machine for 2025, a period in which it produced 7.500 units of product. Between January 1 and October 3, 2026, the Page 688 machine produced 11.250 more units. On October 3. 2026, it was sold for $54,000. Required Prepare journal entries to record: 1. The depreciation expense recorded to the nearest whole month on the first December 31 of each machine's life (for units-of-production, round the rate per unit to three decimal places). 2. The purchase/exchange/disposal of each machine. Question 2: Intangible assets? On February 3, 2020. Secure Software Group purchased the patent for a new software for cash of $220,800. The company expects the software to be sold over the next five years and uses the straight-line method to amortize intangibles. Required 1. Prepare entries to record the: a. Purchase of the software patent. b. Straight line amortization for the year ended December 31, 2020, calculated to the nearest whole month. Round to the nearest dollar 2. On December 31, 2020, the company's adjusted trial balance showed the additional asset accounts shown below. Prepare the asset section of the balance sheet at December 31, 2020, including the patent purchased on February 3, 2020. Accounts receivable... Accumulated depreciation equipment... Accumulated depreciation, building...... Allowance for doubtful accounts........... Cash... $285.000 259,200 189,000 8,400 103,200 477,600 595,200 110,400 135.600 Equipment........... Building....... Land... Merchandise inventory.. 19-18B 29-19B