D. (12 marks) ACCOUNTING FOR CAPITAL ASSETS Rubble Company purchased manufacturing equipment on April 1, 2013 for $23,000 and paid additional transportation costs and taxes of $2,500 at the time of purchase. The equipment is expected to produce 200,000 units over its productive life. The company uses the units-of- production method of depreciation for the equipment, and has estimated a residual (salvage) value of $800 for the equipment at the end of its productive life. Rubble Company has a December 31 fiscal year-end. On January 1, 2015, Rubble Company spent $1,900 on a new engine for the equipment, which led to an improvement in the equipment's speed and efficiency. REQUIRED: (a) (3 marks) Prepare journal entries to record the 2013 purchase of the equipment, and the $1,900 spent on the new engine on January 1, 2015. (b) (5 marks) Calculate depreciation expense for each of the past four years, showing all calculations, and assuming that the company used the equipment to produce the following number of units in each year: 2013: 2014: 10,000 units 25,000 units 40.000 units 45,000 units 2015: 2016: (c) (2 marks) At December 31, 2016 management decides that the equipment is no longer useful. There is better technology available, and the company wants to upgrade its equipment. The equipment is sold for cash proceeds of $4,00 on January 1, 2017. Prepare the journal entry to record the sale. Show/explain all calculations. (d) (2 marks) Explain whether the units-of-production method of depreciation is more consistent or less consistent with the matching principal than the use of straight-line depreciation