Part A (4 marks) On March 1, 2020, Bishop Builders Ltd. purchased a new truck for $50,000. They thought they would be able to sell it for $10,000 when they no longer needed it. The estimated useful life of the truck is 5 years or 250,000 km. The company has a December 31 year-end, prepares adjusting journal entries annually and uses the units of production depreciation method. The following kilometers were driven: 74,000 km in 2020; 62,000 km in 2021; 65,000 km in 2022; 39,000 km in 2023; and 10,000 km in 2024. Required: a) Calculate the depreciation expense that Bishop will record on December 31, 2020 and December 31, 2021. Record your final answer in the table below. Show all calculations. (2 marks) Depreciation Expense 2020 Depreciation Expense 2021 b) On December 31, 2021, Bishop Builders determined that the truck could be sold for $23,000. Discuss whether this would have an impact on the financial statements. Part B (11 marks) On October 1, 2020, Bishop Builders Ltd. purchased a piece of equipment for $16,000. They plan to use it for 4 years and then they estimate it will have a residual value of $1,200. The company has a December 31 year-end, prepares adjusting journal entries annually and uses the straight-line depreciation method. a) Record the depreciation journal entries on December 31, 2020 and December 31, 2021. Account Name Debit Credit Marks Date Dec 31, 2020 Dec 31, 2021 b) On March 1, 2022, the company sold the above equipment for $9,000 cash. Record the required journal entry for the sale of the equipment and any other required journal entries. Date Account Name Debit Credit Marks March 1, 2022