Question 4 (27 marks) Part I On 1 January 2023, Babe Company purchased a machine for a price of $800,000. The expected useful life is 10 years and the residual value was expected to be $60,000. With a special offer, it was purchased at a 5% discount. Sales taxes of $76,000 was paid at the date of purchase. In additions, it cost $180,000 for its delivery and installation. Before the machine was ready for use, the company decided to spend additional $100,000 to upgrade the above machine in order to enhance the capacity and paid $5,000 to employ a technician for the upgrade. To finance the purchase of the machine, the company borrowed $500,000 by signing a 10% one-year notes payable and paid cash for the remaining balance. Required: (a) What is the acquisition cost of the machine? Show your workings. (3 marks) (b) Record the journal entries for the purchase of machine on 1 January 2023. (3 marks) Part II On 1 April 2021, Beauty Company purchased $1,200,000 machine by paying $1,000,000 cash and signing 8% one-year notes payable for the remaining balance. The expected useful life is 5 years. The residual value was expected to be $50,000. The financial year-end date is 31 December and the company adjusts its account monthly. Required: (a) Complete the depreciation schedule (as below) by using the following depreciation methods: (i) straight-line method (ii) double-declining balance method (with half-year convention) Year 2021 2022 Computation Depreciation Accumulated Net Book Expense Depreciation Value (16 marks) (b) On 1 July 2023, the company disposed the above machine for $300,000, the customer settled the payment by cash and notes receivable with equal amounts. Assuming straight-line method was adopted, prepare journal entries to record the disposal of machine. (Remarks: Depreciation expense has been adjusted up to date of disposal.) (5 marks)