c) Assume that FC used the straight-line method of depreciation and decided to sell the equipment on December 31, 2022 for $800,000, determine the gain or loss on the sale of equipment? (You MUST indicate whether it is gain or loss and the amount) (3 Marks) d) Assume that subsequent to the acquisition of the equipment, FC incurred the following costs listed below. Classify each transaction as a Revenue Expenditure (RE), Capital Expenditure (CE) or neither (N). (3 Marks) 1. Paid $6,500 for monthly salaries: 2. Paid $2,100 for ordinary repairs and maintenance on the equipment: 3. Paid $ 17,000 to replace a major component of the equipment that improved the useful life of the equipment: On Julyi 2021 a Consulting company ForU Consulting Inc. (FC) purchased heavy construction equipment for $1,000,000. FC paid $6,000 in transport fees to transport the machine to its place of business and an additional $2,000 in shipping insurance. FC expects that the residual value of the equipment at the end of its 6-year life will be $200,000 and expects that equipment will operate for a total of 80,000 equipment working hours. Actual equipment working hours used for the years ended December 31, 2021 and December 31, 2022 are 6000 and 14000, respectively. Required: a) Compute the acquisition cost of the equipment by FC on July 1, 2021 (2 Marks) $1,008,000 b) Compute the depreciation expense for the years ended December 31, 2021, and December 31, 2022, under the Straight line and Units of Production methods. (4 Marks) Depreciation Method Depreciation Expense for 2021 $11,222.22 Depreciation Expense for 2022 $134,666.67 Straight Line Method $60,600 $141,400 Units-of- Production Method