Part I (32 marks) (a) Strong Company bought a piece of machinery on 1 March 2021 at a cost of $124,000 with a residual value of $4,000. The estimated useful life of this machinery was 10 years. The estimated operation output was 10,000 hours. Compute the depreciation expense of the machinery at the year-end on 31 December for 2021 and 2022 by using the methods shown below (show your workings): 3 BHMH2101 Financial Accounting 2021-2022 Semester 1 Assignment 2 (i) Straight-line (with depreciation calculated to the nearest whole month), (ii) Unit-of-output (Output: 1,000 hours in 2021; 3,000 hours in 2022). (i) Straight-line Method (ii) Units-of-output Method Depreciation expense 2021 2022 (8 marks) (b) Strong Company also purchased an equipment at a cost of $200,000 at the beginning of the year. The estimated useful life of the equipment was 4 years and had a residual value $9,000. If Strong uses double-declining balance deprecation method, prepare a detailed schedule for depreciation, accumulated depreciation, and book value for all the years during its useful life. Use the following table to show your answers (show your workings). Year Book value at Depreciation Expense for the year Accumulated depreciation at year end year end 1 2 3 4 (12 marks) (c) On 30th November 2023, Strong Company decided to sell the above machinery in (a) for $80,000 cash. Assuming that the company uses straight-line depreciation method in (a)(i) and adjusts the depreciation expenses annually, prepare the following journal entries: (i) to adjust the depreciation expense for 2023; (4 marks) (ii) to record the disposal on 30 November 2023. (8 marks)