Questions 3 (34 Marks) Part I (18 marks) Swindall Industries purchased a machine on 3 April 2022 at a cost of $936,000. The estimated useful life of this machine was ten years and estimated residual value was $48,000. The management estimates that the machine can produce 600,000 units of products during the useful life. Workings are required for the answers below. (a) Compute the depreciation expense of the machine at the year-end on 31 December for 2022 and 2023 by using the methods below (round your answers to nearest dollar): (i) Straight-line (with depreciation calculated to the nearest whole month), (ii) 200%-declining-balance (with half-year convention), (iii) Unit-of-output (number of products produced: 60,000 in 2022; 70,000 in 2023). Part II (16 marks) On 2 June 2022, Hills Hardware Ltd. purchased an equipment for $250,000 with an estimated useful of 5 years and an estimated residual value $16,000. On 31 May 2023, the Company sold the equipment for $190,000 cash. The Company uses straight-line depreciation method with half-year convention and adjusts its accounts annually with the year-end on 31 December. Prepare the following journal entries (show your workings): Required: (a) Prepare the journal entries to update the deprecation for 2023. (4 marks) (b) Prepare the journal entry to dispose the said equipment. (8 marks) (c) If the Company did not sell the equipment during 2023 but install a powerful engine cost $78,650 on 1 January 2023 to increase the useful life of the equipment from 5 years to 7 years with the same residual value, what is the new depreciation expense for 2023 ? (4 marks)