of the bonds. (1 mark) Mower Questio- Awe THREE Questions (3 x 3 marks - 9 marks) 06- Obaid Co. purchased equipment for $1,000,000 which was estimated to have a useful life of 15 years with a salvage value of $25,000 at the end of that time. Depreciation has been entered for 5 years on a straight-line basis. In 2021, it is determined that the total estimated life should be 10 years with no salvage value at the end of that time. Instructions (a). Prepare the entry (if any) to correct the prior years' depreciation. (0.4 mark) (b). Prepare the entry to record depreciation for 2015, (2.6 marks) Q7 - Hilal Company purchased a new machine on May 1, 2020, at a cost of $90,000. The company estimated that the machine has a salvage value of $18,000. The machine is expected to be used for 72,000 working hours during its 8-year life. Instructions Compute the depreciation expense under the following methods for the year indicated. (a). Straight-line for 2020. (0.8 mark) (b). Units-of-activity for 2020, assuming machine usage was 6,750 hours. (0.7 mark) (c). Declining-balance using double the straight-line rate for 2020 and 2021. (1.5 marks) search O