Part A A machine was acquired by Tenet Company at a cost of $556,000. Additional expenses incurred included: $25,000 shipping cost to the factory, $19,500 installation cost to set up the machine, $3,000 paid to replace a broken part damaged by an accident during trial run, $1,000 painting of company logo on the new machine, and $5,000 payment of one-year theft insurance. The machine has an estimated useful life of eight years and a residual value of $50,000. Required: What is the cost of the machine to be reported on the company's ledger? (2 marks) Part B On 15th June 2020, Nordic Company purchased a machine for $1,000,000, fully paid in cash. The machine was expected to be used for 8 years, or 400,000 machine hours. The residual value was expected to be $200,000. The company estimated 30,000 and 70,000 machine hours would be used in 2020 and 2021 respectively. The financial year-end date is 31 December and the company adjusts its accounts monthly. Half-year convention is adopted at the year of purchase. Required: Calculate the depreciation expenses in 2020 and 2021 by using (i) straight line depreciation method and (ii) unit-of-production method (8 marks) Part C Due to business expansion, a company purchased a $35,000 new engine to renovate its delivery van. The company paid $5,000 for installation and $1,000 interest to finance the purchase. The company believes the estimated useful life of the van can be extended for 3 more years with no residual value. At the date of installation, the net book value of the van is $12,000. The original estimated useful life is 5 years and the van has been used for 4 years. Required: Calculate the annual depreciation of the van after renovation. (3 marks) (Total 13 marks)