Skye Enterprises purchased Machine no. 200 on July 1, 2020. The following information related to Machine no. 200 was gathered at the end of June: PriceCreditTermsFreightcostsPreparation&InstallationLabourcostsduringregularproductionoperations$170,0002%net10days,0%net30days1,600$7,600$21,000 It is expected that the machine could be used for 10 years, after which the residual value would be S0. However, Skye intends to use the machine for only eight (8) years and expects to be able to sell it for $3,000. The invoice for Machine no. 200 was paid on July 5, 2020. Skye has a December 31 year-end. As Machine no. 200 was purchased at the mid-point (July 1) of the fiscal year, depreciation expense for 2020 is for six (6) months. Phoenix follows IFRS for financial statement purposes. Required: a) Calculate the depreciation expense for the years indicated using the following methods (round to the nearest dollar); t. Straight--ine method for the fiscal years ended December 31, 2020 and 2021. ii. Double-declining-balance method for the fiscal years ended December 31, 2020 and 2021. b) The President of Shye tells you that, because the company is new, she expects it will be several years before production and sales reach optimum level. She asks you, an accounting pollcy advisor, to recommend a depreclation method that will allocgled less of the company's depreclation expense to the early years and more to later years of the assets' Ilves. Which method would you recommend? Explain? c) In your answer to requirement (b) above, how would cash flows to the new company be affected by the cholce of depreclation method? How would current and potential creditors interpret the choice of depreciation mothod? d) Assume that Stye selects the double-dectining-balance method of depreciation. In 2022, demand for the product produced by machine no. 200 decreases sharply, due to the launch of a new and better competing product on the market. On August 1, 2022, management of Shye meets and decides to discontinue manufacturing the product On September 1 , 2022, a formal plan to sell the machine is authorized. On this clate, the machine meets all eriteria for classification as held for sale, and the machine's fair value less costs to sell is $131,000. Galculate the depreciation expense for 2022