Question 1 (20 marks) Read the scenario below and answer the questions that follow: Five and Six (Pty) Ltd, a manufacturing company had the following assets recorded in its books as at 1st January 2022: Asset type Date of purchase Cost (Rand) Depreciation method Manufacturing Equipment 1st April 2020 1 200 000 Straight-line method at 20% per annum. Residual value: Nil. Furniture 1st December 2020 400 000 Straight-line method over a 7-year period. Residual value: R50 000. Computer equipment 1st February 2021 90 000 Diminishing balance method over a 3-year period. During the year ended 31 December 2022, the following transactions took place: Milpark Education Applied Financial Accounting AFAC02-6 Assignment B Page 2 of 3 On 01 November 2022, part of the manufacturing equipment was sold for cash for R253 000 (VAT-inclusive). This equipment which had been bought on 1st April 2020 was put to use on the same date. It had an accumulated depreciation of R210 000 on 31 December 2021. Additional manufacturing equipment was purchased on 1 June 2022 for R322 000 VAT-inclusive. This manufacturing equipment was installed at a cost of R26 450 (VAT-inclusive) and an additional R5 750 (VAT-inclusive) was incurred for delivery. The manufacturing equipment was ready for use exactly one month after purchase. There were no transactions with regards to furniture. Required: 1. Calculate the depreciation on each asset of Five and Six (Pty) Ltd for the year ended 31 December 2022 as well as the total depreciation for the year. (10) 2. Calculate the profit or loss made on the disposal of manufacturing equipment which was sold on the 1st November 2022. (use a T-account) (10) Note to Student: show all relevant calculations. Round up all final answers to the