Question 2 (15 marks) Company K purchased a machinery of $100,000 on 1 January 2016. The machinery's useful life is 4 years with a residual value of $20,000. The machinery is expected to produce 160,000 pieces of goods over its 4-year useful life: 60,000 pieces in 2016, 50,000 pieces in 2017, 40,000 pieces in 2018, and 10,000 pieces in 2019. The machinery was sold on 30 June 2017 for cash $20,000. Required: a. b. c. Discuss the concept AND accounting treatment for depreciation expense (including the journal entry) in accounting. (4 marks) Calculate the depreciation expense for the machinery in 2016 using straight-line method. (2 marks) Calculate the depreciation expense for the machinery in 2016 using units-of-production method. (2 marks) Calculate the depreciation expense for the machinery in 2016 using double-declining-balance method. (2 marks) Discuss with relevant workings whether Company K had a gain or loss for the sale of machinery on 30 June 2017 if Company K used double-declining-balance method for depreciation expense calculation. (5 marks) d. e