Question 2 Ernest and Young recently purchased a piece of sewing machine and a delivery van to begin the sewing operations at their new factory in Markham. Details of the assets are as follows: Assets Date of Purchase Cost ($) Residual Value Estimated useful life Sewing Machine 1 st July 2017 600,000 o 5 years Delivery van 1 st July 2017 780,000 0 5 years Ernest and Young's year-end is December 31 and it uses the straight-line method for all fixed assets purchased. Required: a) Using the above information, complete the following table to show the number of months of services of the fixed assets in their estimated useful life in Ernest and Young. Year Name of Asset Total 2017 2018 2019 2020 2021 2022 Sewing Machine months months months months months months 60 months Delivery van months months months month month months 60 months b) Calculate the monthly charge of the depreciation of the sewing machine and delivery van. c) Record the depreciation in the form of journal entry as at December 31, 2017, on the sewing machine and delivery van. d) Because of the pandemic, the business was closed on December 31, 2021, and the sewing machine was sold at $30,000 while the delivery van was sold at $108,000. You are required to record the profit or loss on disposal of these 2 pieces of assets. * * * * * * ** *END OF TEST * * * * * * * * *