III. Depreciation Expense Park Company purchased machinery for $648,000 on January 1, 2020. The company estimated that the machine would have a salvage value of $54,000 at the end of its service life. It's life is estimated at 5 years. Instructions: Compute the depreciation expense for 2020 and 2021 under the following methods. Each of the following should be considered unrelated. (a) Straight-line. (b) Sum-of-the-years-digits. (c) Double-declining. IV. Impairment Presented below is information related to equipment owned by Lincoln Company at December 31, 2020. Cost Accumulated depreciation to date Expected future net cash flows Fair value $3,150,000 360,000 2,250,000 1,5,30,000 Assume that Lincoln will continue to use this equipment in the future. As of December 31, 2020, the equipment has a remaining useful life of 6 years. Instructions: a. Prepare the journal entry (if any) to record the impairment at December 31, 2020. Show ALL steps required. b. Prepare the journal entry to record depreciation for 2021