Question 3 (9 marks) On January 1, 2015, Time Limited purchased a machine for $350,000. The machine was estimated to have a 10 year useful life with a residual value of $15,000. The company used the straight-line method to depreciate the machine. On December 31, 2019, the company sold the equipment for $190,000 cash Required 1. Calculate the gain or loss on sale on the sale of the machine. 2. Prepare the journal entry to recognize the sale of the machine. Requirement #1 Question 4 (8 Marks) Prepare the journal entries for the following independent situations to recognize the purchase and amortization for the first year. Explanations are not required. a) Magic Plus paid for several patents on January 1, 2019 for a total price of $190,000. The patents have a legal life of 25 years and are expected to provide revenues for the next 10 years. b) January 1, 2019, Darth Vader Ltd. paid $450,000 to acquire Skywalker Ltd. Skywalker had assets valued at $1,750,000 and liabilities of $1,525,000. DATE ACCOUNT DEBIT CREDIT