NBC Pte Ltd purchased a factory machine of $120,000 on 1 January 20X3. The useful life of the machine was estimated to be four years with a salvage value of $6,000. During the useful life, the machine is expected to be used for 10,000 hours. The actual usage of the machine was given as follows:

Year	Hours used
20X3	5,300
20X4	2,500
20X5	1,400
20X6	900

The management adopts the units-of-production method for its depreciation policy for the machine. On 1 January20X7, the company sold the machine for $7,000.

Required:

(a) Determine the depreciation expenses of the machine for each of the four years. Please show all workingsclearly to get full credit.

(7 marks)

(b) Illustrate the accounting of the disposal of the machine in 20X7 as required under Singapore Financial Reporting Standard 16 Property, Plant and Equipment by preparing the necessary journal entries for 20X7. Dates and journal narratives are to be included. Please show all workings clearly to get full credit.

(5 marks)