Make the following calculations

In January, Ml decided to stop using a signficant piece of manufac turing equipment. The equip ent, purchased in 2015, is still quite useful because it can be retrofitted to produ items, but it no longer fits within MI's strategic plan. Details of the disposal are as follows: ment, pu Year Cost Accumulated depreciation Net book value 2015 $750,000 (25,000) 2016 $750,000 (50,000) $700,000 2017 $750,000 (75,000) $675,000 According to the board of directors' meeting minutes, while management of MI intends to sell the machinery because it is only three years old and still has considerable life, the company may con- tinue to use it to produce some units until a buyer is found. Management is responsible for these asset disposal decisions. Assets can be ready within 30 days equipment notice, and the marketing department has begun advertising on local websites in order to sell the Based on the area in which MI is located, there are many manufacturers and a sale should occur in the short term. When it was advertised for sale in January 2017, MI posted an asking price of $450,000 for the equipment. MI predicts that it will take approximately one month to disassemble the equipment. MI has had a number of interested buyers but one in particular has expressed some strong interest. A new company wanting to produce outdoor resin furniture is interested, but is unable to purchase the quipment immediately because it won't be opening up until February 2018. The potential buyeris however, willing to place a 25% deposit on the equipment immediately. As a means of cutting costs, Fred is considering revising the presentation of the financial state- ments to show just revenues and expenses instead of the current presentation of showing a full cost of goods sold statement. Fred is questioning the purpose of presenting such detail in the financial statements. "You and I know what is going on in these books, why do we need to show all this stuff? nually. He has also asked you to include in your report reasons why financial statements are prepared an