Question B3 (36 marks) Part I(30 marks) On 25 March 2020, Miracle Company bought a machine at $1,350,000 with an estimated useful life of 15 years and no residual value. The machine is expected to operate 270,000 hours. The company adjusts its account annually with the year-end date on 31 December. Required: (a) Compute (show workings) depreciation expenses for the machine in 2020 and 2021 by: (i) Straight-line (using half year convention); (6 marks) (ii) 150%-declining-balance (calculate to the nearest whole month); and (6 marks) (iii) Units-of-output method (hours of operation: 12,000 in 2020; 18,000 in 2021) (6 marks) (b) Assume Miracle Company adopts the straight-line method in (a)(i) above. On 5 April 2022 the machine was disposed for $1,150,000 cash. (i) Journalize depreciation of the machine for 2022 before the disposal. (4 marks) (ii) Journalize disposal of the machine on 5 April 2022. (8 marks) Part II (6 marks) MCC company uses straight-line depreciation (round to the nearest whole month) and adjusts its accounts annually on 31 December. On 1 January 2016, MCC purchased a van for $450,000 which has an estimated useful life of 9 years and no residual value. On 1 January 2021, the company incurred the following expenditure on the van: ) $1,500 for annual maintenance and servicing (ii) $60,000 to upgrade the van with a new and more powerful engine (iii) $1,000 to paint the van after 5 years of use. On 1 January 2021, the useful life of the van was revised to 13 years with a residual value of $15,000. Required: (a) What is the book value of the van as at 31 December 2020? (2 marks) (6) Journalize annual depreciation of the van on 31 December 2021. Show workings. (4 marks)