The latest trainers... EDEX Ltd WebEx... L B44 Gulixian Tu... Dashboard | UNIC... Google Translate. M D Internati on Yellow Cheese Co. bought a cheese making machine in January 1st 2X0. The list price was 120,000 but had received a discount of 20,000. The delivery cost was 10,000. As a policy the company replaces such machines every 10 years. The residual value of this machine was estimated to be 10,000. The company uses the straight-line method of depreciation for such machines. (a) What is the amount that will appear as the cost of this particular asset on the Statement of Financial Position (Balance Sheet) of the company for the year ending 2X0? Show all your calculations along with any formulae used. (3 marks) (b) What is the Book Value of the Asset (or Carrying Value) at the end of this first year? Show all your calculations along with any formulae used. (3 marks) At the end of the third year (i.e., after three years have passed, you'll have to work with the "End of Year 3" values), the company made an impairment check for this asset. The market experts estimated that the machine could be sold for a Net Selling Price of 85,000. Also, they estimated that if they kept using this machine it would bring the company an estimated 90,000 in Cash Flows (Net Present Value). (c) Should the company impair this Asset? Yes, or No? Justify your answers by demonstrating your calculation and reasoning. (6 marks) After six years had passed (i.e. at the End of Year 20X6), the company sold the asset for 60,000. (d) Show the journal entries on Dec. 31 to record the sale. Has the company made any profit or loss from this sale? Show any relevant calculations. Make sure you put DR and CR in front of every entry (since you have to work with text and spaces). (8 marks)