PROBLEM 1-2 (DEPRECIATION & DISPOSAL OF PLANT ASSETS) Description Machine A Machine B Cost $580 $800 Purchase Date January 1, 2018 July 1, 2019 Useful Life Residual Value S80 $200 Depreciation Method Straight Line Declining Balance Date Sold Jan 1, 2022 Jan 1,2023 Sales Price $350 $420 10 years 5 years Instructions: 1.Calculate Accumulated Depreciation for both of Asset until Disposal Date. (Using schedule if needed) 2. Calculate Gain or Loss on disposal of assets 3. Prepare Journal Entry : - on disposal date for both assets - on Dec 31 2021 if Machine A & B has not been sold