On September 1, 2019, Arthur Corporation purchased a new central air conditioning unit for $135,000. The estimated residual value is $5,000. The generator has a useful life of seven
years and the company expects to use it for 20,000 hours, in its total useful life. It was used for 1,900 hours in year 1; 4,800 hours in year 2; 4,750 hours in year 3; 4,550 hours in year 4; 4,000 hours in year 5.
Required:
(a). Compute the values of Annual Depreciation, Accumulated Depreciation, and Book Value for the years 2019, 2020, and 2021, if the company follows:
(i). Straight-line Method.
(ii). Units-of-activity Method.
(iii). Reducing Balance Method (at 30%). (10 marks)
(b). Assume that on July 1, 2021, Arthur Corporation plans to sell (dispose of) the central air conditioning unit and intends to make a gain of $10,000 from selling the asset. Calculate 
how much the central air conditioning unit should be sold for in order to make a gain of $10,000 on the disposal of the asset. Assume that the company follows Straight-line Method.