The adjusted trial balance for the year ended December 31, 2019, for CDE Compan shown below. Credit (i) 7,000 25,000 64,000 CDE COMPANY Adjusted Trial Balance For the Year Ended December 31, 2019 Debit Cash $36,700 Accounts Receivable 8,800 Inventory 20,500 Prepaid Insurance 3,200 Equipment 80,000 Accumulated Depreciation - Equipment $ Accounts Payable Notes Payable Common Stock Dividends 12,000 Sales Revenue Gain on Disposal of Plant Assets Loss on Disposal of Plant Assets Sales Returns and Allowance 6,000 Sales Discounts 5,000 Cost of Goods Sold 363,000 Freight-Out 7,000 Advertising Expense 11,000 Salaries and Wages Expense 51,000 Utilities Expenses 18,000 Rent Expense 20,000 Insurance Expenses 5,200 Depreciation Expense (iv) Interest Expense 3,600 Interest Revenue (v) $ 540,200 (ii) 111 3.000 (vi) Information extracted from the accounting records: 1. Among the equipment, Equipment A is purchased on May 1, 2017 at an acquisition cost of $48,000. CDE depreciated the vehicle by the straight-line method using a 4-year service life and no salvage value. Equipment B is purchased on January 1, 2018 at a cost of $32,000. CDE depreciated the vehicle by the straight-line method using a 4-year service life and a $3,200 salvage value. 2. On January 1, 2016, CDE company purchased a limousine at an acquisition cost of $28,000. CDE depreciated the vehicle by the straight-line method using a 4-year service life and a $4,000 salvage value. On July 1, 2019, CDE sold it for $8,000. 3. On January 1, 2016, CDE company purchased a factory machine at a cash price of $40,000. Related expenditures included: sales tax $2,000, insurance during shipping $500, installation and testing costs $900. CDE depreciated the vehicle by the straight-line method using a 4-year service life and a $3,400 salvage value. On December 31, 2019, CDE retired and scrapped it. Required: a. Prepare the entries to record the disposal of the limousine and the factory machine based on information 2 and information 3. Update depreciation on assets disposed of, where applicable. In not more than 70 words, explain why should the firm update for the use of the asset before disposal? b. Update the missing amounts (1) to (vi) in the adjusted trial balance. c. Prepare a multiple-step income statement for CDE company. Assume a tax rate of 20%