Sneezey Ltd acquired an item of machinery on 1 July 2017 by means of a part payment of $50,000 and the remainder by a loan from The Poisoned Apple Bank. Its cost was $250,000. Other costs for the imported machinery were: insurance and freight $30,000 and $10,000 to install the machine into the manufacturing building at the factory site. In addition, it also cost $12,000 to dismantle an old machine on the same site but Sneezey Ltd received $2,000 for it from a scrap merchant. The directors of the company estimated that the machine would produce 200.000 units and have a residual value of $50,000. By 30 June 2018, the machine produced 10,000 units, between 1 July and 30 June 2019 it produced 15,000 units and another 5,000 units between 1 July and 31 December 2019. Required: n) What would be recorded as the cost of the machine to be shown in the Balance Sheet? (1) The accountant recommended using the Units of Production method for depreciation. Explain why? (1) What is the depreciation expense for the period 1 July 2017 to 30 June 2018? In September 2019, the management decided that the machine needed an upgrade to extend its useful life for additional production of another 90,000 units (a total of 290,000 units). The cost of the upgrade was $50.000 and was completed by 1 January 2020 and funded by a further loan from The Poisoned Apple Bank Required: (iv) Prepare the general journal entry to record the upgrade as at 1 January 2020. Include a narration. (V) Prepare the journal entry to record the depreciation as at 30 June 2020 if 10.000 units were produced between 1 January 2020 and 30 June 2020. No change to the estimated residual value was made. On 30 June 2020 the directors obtained an independent valuation which indicated that the market value of the machine was $270,000. Required: (vi) Prepare the general journal to record the recognition of the valuation of the machine for 30 June 2020. Include a narration. (vii) How would the machine be shown in the Balance Sheet at 30 June 2020? Prepare an extract from the Balance Sheet