On 25 March 2020, Miracle Company bought a machine at $1,350,000 with an estimated useful life of 15 years and no residual value. The machine is expected to operate 270,000 hours. The company adjusts its account annually with the year-end date on 31 December.

(b) Assume Miracle Company adopts the straight-line method in (a)(i) above. On 5 April 2022 the machine was disposed for $1,150,000 cash.

(i) Journalize depreciation of the machine for 2022 before the disposal. (4 marks)

(ii) Journalize disposal of the machine on 5 April 2022. (8 marks)