Jazz Manufacturing Limited purchased a new piece of machinery on January 1, 2019 for $150,000. The machinery has a useful life of 5 years or 1,300,000 units and management estimates they will be able to sell it for $20,000 at the end of its useful life. The machinery produced 275,000 units in 2019, 280,000 units in 2020, 250,000 units in 2021 & 200,000 units in 2022.

Required: 1. Calculate the depreciation expense for 2019, 2020, 2021 & 2022 using a) straight line method b) Units of production method and c) Double-declining balance method 2. ( Using Straight Line depreciation) Assume that Jazz Manufacturing sold the machinery on January 1, 2022 for $50,000. What is the gain or loss on the sale? 3.( Using Straight Line depreciation) Prepare the journal entry to record the sale of the machinery on January 1, 2022.