Question (17 marks) Abby Inc. purchased and installed a machine on January 11, 2014, at a total cost of $170,000. Straight-line depreciation was taken each year for two years, based on the assumption of a five-year useful life and a salvage value of $20,000. Travis Company has a company year end of December 31. Depreciation is taken to the nearest whole month in the year of purchase and year of disposal. 1 " T Ff lil S's REQUIRED: (a) Calculate the net book value of the machine on December 31, 2015 (4 marks) During 2016, management of Abby Inc, determined that the total life of the machine should be revised to 7 years (and not the original estimate of five), and at the end of that time, the estimated salvage value was $10,000 (b) Please calculate the depreciation for 2016 based upon the new assumptions noted above (3 marks), On September 30, 2017, the machine was disposed of for proceeds of $50,000. (c) Present the journal entry to record depreciation for 2017 (4 marks). (d) Present the journal entry to record the disposal of the machine on September 30, 2017 (6 marks)