QUESTION 3 Cannon Company is considering purchasing a machine. The machine will produce the following cash flows: Year 1 $60,000 Year 2 $90,000 Gannon requires a minimum rate of return of 10%. What is the maximum price Cannon should pay for this machine? $128,925.90. $64,462.95 $150,000.00 $75,000.00 QUESTION 4 On January 1, a machine with a useful life of five years and a residual value of $2,000 was purchased for $10,000. What is the accumulated depreciation at the end of year 3 if the asset is depreciated on a straight-line basis? $3,200 $6,000 $1,600 $4,800 QUESTION 5 Waverly Construction purchased a dump truck 4 years ago for $46,000. Currently the accumulated depreciation on the dump truck is $37,000. Prepare journal entries to show the sale of the dump truck on August 15th, 2021 assuming the dump truck was sold for $15,000 a journal entry would be made where: Loss on sale - dump truck account was debited for $4,000 Loss on sale - dump truck account was credited for $4,000 Gain on sale - dump truck account was credited for $6,000 Gain on sale - dump truck account was debited for $6,000