B2 Part I Water Sewage Company purchased a new machine for $6,600,000 on 20 June 2018. The machine has an estimated residual value of $300,000 and an estimated useful life of 8 years or a handling capacity of 180 million litres of water. Water Sewage Company closes and adjusts its accounts annually on 31 December. Required: (a) Compute the depreciation expenses on this machine in 2018 and 2019 respectively by using the following methods: (i) 200%-declining-balance (with full year depreciation in the acquisition year); (2 marks) (ii) Straight-line (with depreciation calculated to the nearest whole month); and (2 marks) (iii) Units-of-output method (litres of water cleaned were 12 million in 2018 and 21.6 million in 2019). (2 marks) (b) If Water Sewage Company adopts the depreciation method stated in (a)(i) above and decides to donate this machine to a charitable organisation on 25 January 2020, prepare the journal entries for this transaction on 25 January 2020. Assume no depreciation will be charged in the disposal year. (3 marks) Part II On 9 March 2016, Starlight Corporation installed a solar system for $540,000 in its office building. The system had an estimated residual value of $60,000 and an estimated useful life of 10 years. On 10 November 2019, Starlight replaced the old solar panels with an advanced model at a total cost of $100,600 and revised the system's useful life to 15 years in total with no change in the residual value. Starlight adopts the straight-line method of depreciation (to the nearest whole month) and adjusts its accounts annually on 31 December. Required: (a) Compute the book value of the solar system after recondition. Show your workings. (3 marks) (b) Compute the depreciation expense of the solar system for the year 2019. Show your workings and round ALL answers to integers