C. Shannen Limited bought an equipment costing $300,000 on 1 January 2020. The estimated useful life of the equipment is 5 years. The scrap value at the end of the useful life is $40,000. The total capacity of the equipment is 20,000 machine hours. The following machine hours for the first two years: Year 1 950 hours Year 2 1,600 hours Required: (1) Calculate the depreciation expense using the straight-line method. [4 marks] (il) Calculate the depreciation expense for year 1 and year 2 using the units of use method. [5 marks] [Total 25 marks]Question 2 A. Shannen Ltd sold a piece of restaurant equipment to another restaurant on July 1, 2020 for $500,000 cash. The equipment originally cost $1,200,000 and the accumulated depreciation as at 1 July 2020 was $720,000. Required: Calculate the gain or loss on disposal of the restaurant equipment on 1 July 2020. (You are required to show the formula used and all supporting workings) [4 marks] B. The following balances are taken from the books of Shannen Ltd for December 2020: $ Cash 10,000 Trade Receivables 58,000 Opening Inventory 12,000 Machinery 320,000 Accumulated depreciation 120,000 Trade payables 62,000 Accruals 13,400 Returns outwards 4,500 Capital ??? Purchases 88,000 Sales 153,000 Distribution Costs 24,980 Depreciation expense 13,450 Returns inwards 2,340 Administrative expenses 43,000 Bank Overdraft 3,290 Carriage inwards 1,600 Required: Prepare a Trial Balance for Shannen Ltd as at December 2020. [12 marks]