Part C Canyon Moulding Co. purchased machinery on May 1, 2011, for $315,000.The equipment was estimated to have a useful life of 5 years, a production capacity of 240,000 units and would be used for 25,000 working hours. The estimated residual value is $15,000. In 2011, the company used the machine for 2,650 hours and produced 25,500 units. The company has a December 31, year-end. Required: 1. From the information given calculate the following: Units of activity- Input method Units of activity - Method Double diminishing (Hours) (Output) method (Units) Depreciation rate Depreciation expense for 2011 (show calculations) 2. Assume instead that the machinery was depreciated using the straight- line method. On January 1, 2014 the machine was traded for a similar machine. Assume that the transaction lacks commercial substance. The following information is made available: Fair value of machine traded in Fair value of machine received Cash received $170,000 160,000 10,000 Prepare the journal to record this exchange on January 1, 2014.