Question 4: (Total 10 marks) (a) Logo Company purchased a machine at a cost of $ 100,000 on 1/1/2014. The machine is expected to have a $2,000 salvage value at the end of its 5-year useful life. Instructions: 1- Compute the depreciation rate. (1 mark) 2- Using the straight-line method, prepare a depreciation schedule, showing the annual depreciation expense for the machine over its 5-years life.(5 marks) 3- Record the depreciation expense on 31/12/2014 in the general journal.(1 marks) Answer: Annual Year Depreciable cost Dep. Rate Depreciation expenses Accumulated Book Depreciations Value .( 1- Journal entry for the first year 1 marks) Date accounts Dr Cr (b)Khamis Company purchases a vehicle at a cash price of $120,000. Related expenditures are sales taxes $15,000, painting and lettering $2,000, motor vehicle license $800, and a three-year accident insurance policy, $1,600. Compute the cost of the vehicle