Khalid Co. sold two machines in 2015. The following information pertains to the two machines: Purchase Useful Salvage Depreciation Machine #1 #2 Cost $66,000 7/1/11 $50,000 7/1/14 Date Life Value Method 5 yrs. $6,000 5 yrs. $5,000 Straight-line Double-declining- balance Sales Date Sold 7/1/15 Price $15,000 12/31/15 $30,000 Declining balance rate for depreciation method double declining balance is = 0.4 Required a. Compute the depreciation on each machine (machine 1 and 2) to the date of disposal (4 marks) b. Calculate the book value at the date of sale and gain (loss) (2 marks) c. Refer to machine #1, prepare the journal entries in 2015 to record 2015 depreciation (1 mark) and the sale for machine #1 (3 marks) Answer Date/Year BV at beginning Depr. Expense Acc. Depr BV. at the end 2014 2015