QUESTION 6 - (INVENTORIES) MC Inc. uses a perpetual inventory system. At January 1, 2019, inventory was $1,000,000 at both cost and net realizable value. At December 31, 2019 the inventory was $1,370,000 at cost and $1,255,000 at net realizable value (NRV). Required: a) Prepare the necessary December 31, 2019 journal entry under indirect method. b) Prepare partial balance sheets as of December 31, 2019. QUESTION 7- (TANGIBLE ASSETS) On January 1, 2017, the Morgantown Company purchased equipment with an original cost of $30,000. It estimates a 10 year-life with no salvage value. The company uses straight line depreciation method. However during year 3 (year 2020), Morgantown Company estimates that it will use the machine for an additional 9 years. Required: Compute the revised annual depreciation and prepare the journal entries on December 31, 2020