Question 6: 8 marks (16 minutes) On January 2, 20x4 Xander Corp. received its new equipment, which was installed that day, and wrote a cheque to Caterpillar Inc. for $270,000. The equipment will be used to produce Gizmos, and the company's COO estimates that a total of 2,000,000 Gizmos can be produced by this piece of equipment over the next 8 years, after which the residual value of the equipment will be $20,000. During 20x4 Xander produced 180,000 Gizmos. Required - (All parts are unrelated, i.e. complete separately ignoring the other a. Prepare ALL journal entries relating to the equipment for the year ended December 31,204, assuming .ander ukes the units-of-production method to depreciate this asset. b. Assume now Xander uses the diminishing balance method of depreciation at a rate of 30%. Calculate the depreciation expense for the year ended December 31,205. (no journal entries required) c. Assume Xander uses the straight-line method of depreciation. If the equipment is disposed of on December 31,208 for $70,000, what is the gain/loss on disposal on the sale of the equipment? Assume that the depreciation expense for 208 has already been taken. (no journal entry required)