Principles of Accoumting 11-4003946.4-First Examination QUESTION 1: 15 MARKS Al-Hamra Manufacturing Corporation was established in 1990 and since then become one of the leading company in manufacturing industries in the UAE. The company recently acquired a new machine aims to enhance production capacity. Purchased a Laser-welding machine for cash on September 30) 2016 for AED192,450. Related expenditures included: sales tax AED2,500, shipping costs AED1,850, insurance during shipping AED2,000, installation and testing costs AED1,200. Al-Hamra Manufacturing Corporation estimates that the useful life of the machine is 5 years with a AED15,000 salvage value remaining at the end of that period. It is estimated that the machine could be used for a total of 200,000 hours during its useful life. REQUIRED: a. Determine the amount to be recorded as value of the machine and prepare relevant journal entry to record the purchase on September 30, 2016. (4 marks) b. Calculate the amount of depreciation expense that Al-Hamra Manufacturing Corporation should record for the machine each year of its useful life (year 1 to year 5) under the following assumptions: i. Al-Hamra Manufacturing Corporation uses the straight-line method of depreciation. ii. Al-Hamra Manufacturing Corporation uses the hours-of-activity. Actual usage is as follows: - 2016,9,000 hours; - 2017,35,000 hours; - 2018,53,000 hours; - 2019,45,000 hours; - 2020,58,000 hours. (9 marks) c. Prepare journal entry to record depreciation for Al-Hamra Corporation for the year ended December 31, 2016. Assume the company uses Double Declining Rate method. (2marks)