topic. For part I, II, III and IV. you must select the alphabet to the one best answer and input it into the computer. You are permitted to make corrections to any of your inputted ans g the duration of your session. For Part V. you need to upload a PDF document. PART 1: Long-term assets 16 MARKS: QUESTIONS 16 to 22 Mon-Royal Co. purchased equipment on January 1, 2017 for $3,000,000 and paid cash for $2,000,000 and issued a 2-year note payable for the rest. Mon-Royal Co. also paid $20,000 cash for shipping and installation of the equipment. Other information Estimated useful life of the equipment at the time of purchase, 10 years. Estimated salvage (residual) value at the time purchase, $320,000. The company uses the straight-line method of depreciation The company's fiscal year coincides with the calendar year. On January 1, 2019 the equipment needed a major repair. The company paid $400,000 to repair the equipment. Based on an expert opinion, the repair will increase the useful life of the equipment for two years, however the residual value remains the same. . On July 1, 2020 the company sold the equipment for $2,400,000 cash. . prepared by Mon-Royal Co. to record to wsition of equipment on January 1, 2017 is O a. Dr. Equipment $3,000,000; Cr. Cash $2,000,000. Cr. Note payable $1,000,000. O b. Dr. Stock $3,020,000; Cr. Cash $2,020,000, Cr. Note payable $1,000,000. Oc. Dr. Equipment $3,000,000, installation expense $20,000; Cr. Cash $2,020,000. Cr. Note payable $1,000,000 O d. Dr. Equipment $3,020,000; Cr. Cash $2,020,000, Cr. Note payable $1,000,000. What would be the amount of depreciation expense based on straight line method for the year 2017 and 2018 O a. 270,000 for year 2017 and 270,000 for year 2018. O b. 650,000 for year 2017 and 650,000 for year 2018. O c. 600,000 for year 2017 and 700,000 for year 2018. O d. 540,000 for year 2017 and 560,000 for year 2018. The journal entry prepared by Mon-Royal Co. to record the depreciation expense for year 2018 is O a. Dr. Depreciation expense 560,000; Cr. Accumulated Depreciation 560,000. O b. Dr. Depreciation expense 560,000; Cr. Equipment 560,000. Oc. Dr. Depreciation expense 270,000; Cr. Equipment 270,000. Od. Dr. Depreciation expense 270,000; Cr. Accumulated Depreciation 270,000. jestion 19 Prepare the journal entry to record the major repair ot yet nswered O arked out of a. Dr. Equipment $400,000: Cr. Accounts Payable $400,000. O b. Dr. Repairs expense 400,000; Cr. Cash $400,000. O c. Dr. Equipment $400,000: Cr. Cash $400,000. O d. Dr. Repairs and maintenance expense $400,000; Cr. Cash $400,000. 100 Flag question Question 20 What is the necessary journal entry to record depreciation expense for 2019 Not yet answered Marked out of O a. Dr. Depreciation Expense $256,000; Cr, equipment $256,000. O b. Dr. Depreciation Expense $270,000; Cr. Accumulated Depreciation $270,000. Oc. Dr. Depreciation Expense $256,000; Cr. Accumulated Depreciation $256,000. O d. None. 3.00 Flag question been correctly recorded) but of question O a. Dr. Cash 2,400,000; Dr. Gain $96,000; Dr. Accumulated duwuation-equipment $924,000; Cr. Equipment $3,420,000 Ob. Dr. Impairment loss $2,400,000, Cr. Cash $270,000; Cr. Accumulated depreciation equipment $2,130,000 Oc. Dr. Depreciation expense 302,000, Cr. Accumulated depreciation equipment 302,000. Od Dr. Cash 2,400,000; Dr. Loss $96,000; Dr. Accumulated depreciation-equipment $924,000; Cr. Equipment $3,420,000. on 22 Assume for this part only, the company uses double-declining method of depreciation. Calculate the amount of depreciation expense for the year 2017 and 2018. 1 hred od out of O a $483,200 for year 2017 and $604,000 for year 2018, Ob. $500,000 for year 2017 and $400,000 for year 2018. Oc. $604,000 for year 2017 and $483,200 for year 2018 O d. None ng