Thornhill Manufacturing Inc. purhased and later sold a machine. Details relating to the machine are below.

Acquisition cost	$132,000
Date of purchase	1-Apr-20
Date put into use	1-May-20
Estimated useful life in years	5
Estimated residual value	$18,000
Date of disposal	1-Jul-24
Proceeds of disposal	$58,000

Complete a depreciation chart for this machine and then answer the following questions.

Question 20 (2 points)

Question 20 options:

What is the depreciable amount of the machine?

Question 21 (2 points)

Question 21 options:

What is this machine's ANNUAL depreciation expense?

Question 22 (2 points)

Question 22 options:

How much depreciation expense should be recorded in 2020?

Question 23 (2 points)

How is depreciation recorded at year end? Select all that apply.

Question 23 options:

a)	Increase Equipment

b)	Increase Accumulated Depreciation

c)	Decrease Depreciation Expense

d)	Decrease Accumulated Depreciation

e)	Decrease Equipment

f)	Increase Depreciation Expense

g)	Increase Cash

h)	Decrease Cash

Question 24 (2 points)

Question 24 options:

What is the accumulated depreciation at the end of 2022?

Question 25 (2 points)

Question 25 options:

How much depreciation expense should be recorded in 2024, the year of the disposal?

Question 26 (2 points)

Question 26 options:

What is the book value on the disposal date?

Question 27 (2 points)

Question 27 options:

What is the gain or loss on the disposal? If a loss, enter as a negative number (i.e. as -1000). If a gain, enter as a positive number (i.e., as 1000).

Question 28 (4 points)

How will the disposal of the machine be recorded? Ignore the partial-year depreciation entry. Select all that apply. (4 marks)

Question 28 options:

a)	Decrease Loss on Disposal

b)	Decrease Accumulated Depreciation

c)	Increase Gain on Disposal

d)	Decrease Depreciation Expense

e)	Increase Accumulated Depreciation

f)	Increase Loss on Disposal

g)	Decrease Cash

h)	Increase Cash

i)	Increase Depreciation Expense

j)	Increase Equipment

k)	Decrease Equipment

l)	Decrease Gain on Disposal