BC Computers Inc started operation on January 1, 2007 and declared its financial year end as December 31. The following occurred in the books of BC Computers Inc from 2007-2010: 2007 1-Jan Bought equipment for $1000 on credit from Halliday Supplies 2008 1-Feb Bought equipment costing $6500 by cheque from Office Depot 30-Jun Bought equipment for $500 cash 2010 1-Aug Traded in the equipment bought in 2007 for a better model for $1500. The company received a trade in allowance of $400, which was used in part to acquire the new equipment. The remaining amount was paid for in cash. The company depreciates all equipment at a rate of twenty five (25\%) percent using the reducing balance method. Assets are depreciated on a month by month basis but no depreciation is charged in the year of disposal. REQUIRED: a. Prepare the following accounts based on the information provided: (i) Equipment (8 marks) (ii) Accumulated Provision for Depreciation (Round all figures to whole numbers) (16 marks) (iii) Disposal (4 marks) b. Why is depreciation charged on fixed assets per annum? (1 marks)