Question A4 Part I Surabaya Corporation, an Indonesia mining company bought a new grinding mill for $7,300,000 on 4 August 2019. The company estimated that the mill had a useful life of 10 years with a residual value of $100,000. It also estimated the mill can produce a maximum of 4,800,000 tons of mining products during its entire useful life. The fiscal year of the company ends on 31 December Required: (a) Compute the depreciation expense on the mill in 2019 and 2020 respectively, using the following methods: (1) Straight-line (calculated to the nearest whole month); (5 marks) (ii) 150% declining-balance calculated to the nearest whole month); and (5 marks) (iii) Units-of-output method (2019: 340,000 tons, 2020: 550,000 tons). (2 marks) (b) Assume Surabaya Corporation adopted the straight-line depreciation method for the mill bought on 4 August 2019. Effective from 1 February 2021, the company revises the mill's total useful life to 6.5 years with a new residual value of $20,000. Compute the total depreciation expense in 2021. (6 marks) Part II In 2018, Nortel Logistics Corporation purchased a forklift truck for $553,000. It had an estimated useful life of four years and a $25,000 residual value. The company uses straight-line depreciation method and applies the half-year convention in the year of purchase. On 1 July 2021, the company sold the truck for $165,000 cash. The company adjusts its accounts annually with the year-end on 31 December. Required: Prepare the journal entries at the time of sale. (7 marks)