Ques. 3 Wildwood Corp. purchased machinery for $315,000 on May 1, 2017. It is estimated that the machinery will have a useful life of 10 years, salvage value of $15,000, production of 240,000 units, a hours of 250 machinery produces 25,500 units. Requirements: Compute the depreciation During 2018, Wildwood Corp. uses the machinery for 2,650 hours, and se for 2018 under each of the following depreciation methods 85.000 1. Straight-line 3000-50 3. Working hours 5. Declining-balance 2. Unit-of output (production) Ques. 4 Garcia Company is trying to decide whether certain of its equipment should be witten off as a charge to current operations due to obsolescence. This equipment has a cost of $900,000 with depreciation to date of $400,000 as of December 31, 2017. On December 31, 2017, management projected its future net cash flows from this equipment to be $300,000 and its fair value to be $230,000. The company intends to use this equipment in the future. Requirements 1. Prepare the journal entry (if any) to record the impairment at December 31, 2017 2. Where should the gain or loss (if any) on the write-down be reported in the income statement? 3. At December 31, 2018, the equipment's fair value increased to $260,000. Prepare the journal entry (if any) to record this increase in fair value