QUESTION 1 1. Compute weighted average accumulated expenditure (WAAE from the following information: 2Marks X Corporation borrowed $300,000 at 12% interest from State Bank on Jan. 1, 2011, for specific purposes of constructing special-purpose equipment to be used in its operations. Construction on the equipment began on Jan. 1. 2011, and the following expenditures were made prior to the project's completion on Dec. 31, 2011: Actual Expenditures: January 1, 2011 SR 150,000 April 30, 2011 SR 250,000 November 1, 2011 SR 120,000 December 31, 2011 SR 140,000 Total expenditures SR 660,000 QUESTION 2 1. XYZ Corporation owns machinery that cost $15,000 when purchased on July 1, 2007. Depreciation has been recorded at a rate of $2,000 per year, resulting in a balance in accumulated depreciation of S7.000 at December 31, 2010. The machinery is sold on September 1, 2011, for $9,000. Prepare journal entries to a update depreciation for 2011 and b. record the sale entry QUESTION 3 ABC Corporation purchased a new machine for its assembly process on August 1, 2010. The cost of this machine was 20,000. The company estimated that the machine would have a salvage value of 4,000 at the end of its service life. Its life is estimated at 5 years and its working hours are estimated at 20,000 hours. Year-end is December 31. Compute the depreciation expense for 2010 under the Activity method assume 1000 hours used in 2010 QUESTION 4 1. Assume that Cruz Company performs an impairment test for its equipment. The carrying amount of Cruz's equipment is $150,000, its fair value less costs to sell is $120,000, and its value-in-use is $135.000 Calculate the loss on impairment and record the journal entry