QUESTION 4 (20 MARKS) On January 2, 2011, a company purchased a new piece of Equipment. The Equipment has an expected useful life of 10 years. The Equipment cost $680,000. Shipping, installation and set-up were an additional $34,000. At the end of the useful life, the company expects the Equipment to have a residual value of $64,000 i) State the journal entry necessary to record the purchase of the equipment. ii) What is the book value of the equipment on December 31, 2013 if the company ii If the company uses the double declining balance method of depreciation, what is iv) Assuming that the company uses the straight-line method of depreciation and sells (2 marks) (3 marks) (4 marks) uses the straight-line method of depreciation? the depreciation expense for 2012? the equipment on September 30, 2014 for $495,000, journalize the entry to record the sale. Prepare the statement of disposal clearly showing the loss or gain on disposal. (5 marks) v) Assuming that the company uses the straight-line method of depreciation. During the first week in January of 2014, major ovrhaul of the equipment is completed at a cost of $72,600. The costs extended its useful life for 2 years beyond the 10 years originally estimated. Residual value at the end of 12 years will be $75,000. What is the depreciation expense for each of the remaining years? (6 marks)