(Total 20 marks) Question 2 Splash Corporation acquired equipment on April 1, 2012 for $30,000. It was expected to have a 4 year life, a lifetime production of 170,000 miles, and a residual value of $1,000. The machine produced 50,000 miles in 2012, 45,000 miles in 2013, 40,000 miles in 2014 and 35,000 miles in 2015. Required: a. Prepare a schedule of depreciation expense for 2012 to 2014 for the equipment under the following methods: 1. Straight-ling method (5 marks) ii. Units of production method (3 marks) b. Assume Splash plans to sell or dispose the equipment at the end of year 2. What should Splash record in their book if this happens: i. Sell at price of $20,000 (Assume using units of production method) (4 marks) ii. Dispose the asset since it can't be used any more. (assume using straight-line method) (3 marks) iii. Exchange with similar Equipment with price of $35,000 (Assume using Straight-line method and trade-in cash paid is $5,000)