Question 4 (34 marks) SY Limited purchased a machine on 1 May 2018 at a cost of $125,000. The estimated useful life of this machine was 10 years, with a residual value of $5,000 and the estimated operation output was 50,000 hours. Required: (a) Compute the depreciation expense of the machine at the year-end on 31 December for 2018 and 2019 by using the methods below. Copy the following table to present your answer. Show your workings. (1) Straight-line (with depreciation calculated to the nearest whole month), (ii) 200%-declining-balance (with half-year convention), (iii) Unit-of-output (5,000 hours in 2018; 5,500 hours in 2019). Year k i) Straight-line Method () 200% declining- balance Method 1) Units-of-output Method 2018 2019 (24 marks) (b) On 31 March 2020, SY Limited sold the machine for $60,000 cash. The company used straight-line depreciation method with depreciation calculated to the nearest whole month. The company adjusts its accounts annually. Prepare journal entry to: (1) update the depreciation expense in 2020. (2 marks) (ii) record the disposal of machine. (4 marks) (c) Compute the acquisition cost of the machinery based on the following information. Show your workings. Invoice price Sales tax when purchase Import freight charge Installation fee Painting fee during installation Disposal fee after 3 years $100,000 4% of invoice price $2,000 $400 $5,500 $600 (4 marks)