You are the accountant of South Company. The company bought a machine for $900,000 April 2015. The machine had an estimated residual value of S100,000, and had estimated us life of ten years, or had an estimated operation output of 100,000 hours. The year-end date of company is 31 December. Required: (a) Calculate the depreciation expenses on this machine in 2015 and 2016 respectively using the following methods: (i) (i) Straight-line (with depreciation calculated to the nearest whole month); and (ii) Units-of-output method (hours of operation 8,000 in 2015; 12,000 in 2016). 150%-declining-balance (with half-year convention); (2 mark (2 mark (2 marks Which accounting principle can be best applied to explain the depreciation charged for th property, plant and equipment? Give TWO criteria that an asset can be classified a property, plant and equipment (b) (2 marks Part ll During 2014, Loop Company expanded its business and acquired a machine for $375,000. had an estimated useful life of five years and a $75,000 residual value. The company adopts straight-line depreciation method and applies the half-year convention. On 1 September 2016, the company sold the machine for $240,000 cash. The company adjusts its accounts annually with the year-end at 31 December. It Required: (a) Prepare the journal entries to update the depreciation before disposal in 2016; and (b) Prepare the journal entries at the time of disposal in 2016. (2 marks) (4 marks)