this is the beginning of q.4

4. Assume MI sells the asset at the end of 12-31-2022 for $244,000. Compute the book value of the machine on 12-31-2022 if IM had used the SYD method. Remember that $507,000 is your initial cost and the salvage value is still $39,000. Compute the gain or loss on the sale. Book Value = Gain or loss = Record the journal entry for the sale 3 Problem (18 points) SHOW AND LABEL ALL CALCULATIONS CLEARLY! The McCarthy and Mars (IM) company purchased a new machine on January 1, 2020 for a list price of $450,000. In addition to the list price, MM paid a 64 sales tax on the list price. MM also incurred installation and delivery charges of $30,000 in total, MM also paid $5,000 to have the old machine removed and disposed of. During the installation process Marstripped over the installer and knocked McCarthy into the machine causing damages to the machine in the amount of $3,000. The machine is expected to have a useful life of 8 years or 200,000 units with an estimated salvage value of $39,000 There were 30,000 units produced in 2020 and 35,000 units produced in 2021. If necessary, round your answers to the nearest dollar. REQUIREMENTS: SHOW ALL COMPUTATIONS CLEARLY!! 1. Compute the initial cost of the machine on 1-1-2020. IGNORE YOUR ANSWER TO PART 1 AND ASSUME THE INITIAL COST IS S507.000 FOR THE REMAINING PARTS OF THIS PROBLEM! THE SALVAGE VALUE IS STILL $39,000 2. Compute the depreciation expense for 2020 and 2021 under each of the methods below. Assume the company has a calendar year-end. a. Straight-line: 2020: 2021: b. Sum-of-the-years-digits method (SYD): 2020: 2021: c. Double-Declining Balance Method (DDB): (AFTER YOU DOUBLE, CARRY THE FINAL DDB % TO TWO DECIMAL PLACES) 2020: 2021