Question 1 (28 marks) Buhane Limited purchased a machine on 5 May 2018 at a cost of $250,000. The estimated useful life of this machine was 10 years, with a residual value of $10,000 and the estimated operation output was 100,000 hours. Required: (a) Compute the depreciation expense of the machine at the year-end on 31 December for 2018 and 2019 by using the methods below. Copy the following table to present your answer. Show workings. (1) Straight-line (with depreciation calculated to the nearest whole month), (ii) Unit-of-output (10,000 hours in 2018; 11,000 hours in 2019). (iii) 200%-declining-balance (with half-year convention), Year (1) Straight-line (ii) Units-of-output (m) 200% declining- Method Method balance Method 2018 2019 (18 marks) (b) On 28 March 2020, Buhane Limited sold the machine for $120,000 cash. The company used straight-line depreciation method with depreciation calculated to the nearest whole month. The company adjusts its accounts annually. Prepare journal entries: (1) to update the depreciation expense in 2020. (2 marks) (ii) to record the disposal of machine. (4 marks) (e) On Ist January, 2020, Buhane purchased a new machine and paid by issuing a note payable. The information below is related to the acquisition expenditure of the machine: List price S200,000 Sales tax 5% of list price Installation fee $800 Shipment charge $4,000 Repair fees for parts broken $11,000 by a staff Cleaning fees to remove engine oil $1,200 accidentally spilt on the floor Prepare journal entries to record the purchase of the machine on 19 January, 2020 (Show workings) (4 marks)