Font 4. A company that makes up its financial statements annually to 31 December, charges depreciation on its machinery at the rate of 12% per annum using the reducing balance method. On 31 December 2018, the machinery consisted of 3 items purchased as shown: On 1 January 2016 Machine A $4,000 On 1 September 2017 Machine B $7,000 On 1 May 2018 Machine C $2,000 Required Your calculations showing the depreciation expense for the year 2018. 5. An item of plant and machinery was sold within the year for $5,000. The asset cost the company $10,000 over 2 years ago. The balances on the cost account and accumulated depreciation account were $118,000 and $18,000. It is company policy to provide for depreciation in the year of purchase but not in the year of sale. (Two years' depreciation charged at 20% straight line per year had been expensed in relation to this asset). Required Calculate the profit and loss on disposal (show all ledger account entries)