On 1-4-2015 LOTUS imported a machine from China worth $73000 and paid the following expenses: shipping $1,000, customs fees $500, fire insurance $150, shipping insurance $300, installation $200, and annual maintenance $100 $.

The estimated useful life of the machine is five years or 165,000 units, and the scrap value is $3,000

On 1-4-2020 LOTUS sold the machine for $5000

Required :

1. Calculating the cost of the machine and recording the necessary entry on 1-4-2015

2. The value of the depreciation expense for each of the next five years using the straight-line method and the reducing installment method

3. Proof of sale of the machine