Question: Exercise 1-problem solving (35 points) These financial items are for Vert Co Service at year-end, December 31, 2020 Salaries and Wages 410,000 Dividends 25,000

Exercise 1-problem solving (35 points) These financial items are for Vert Co Service at year-end, December 31, 2020 Salaries and Wages 410,000 Dividends 25,000 expense Retained earnings at the Utilities expense 54,000 27,000 beginning Service Revenue 970,000 Accumulated depreciation- Equipment 6,000 Rent revenue 19,800 Depreciation expense 23,500 Share capital - ordinary 60,000 Instructions: Prepare an income statement for the year ended December 31, 2020. (35 points) Exercise 2 - problem solving (15 points) Copyright American College of the Middle East, 2020 Van Gogh Painting purchased a new machine on September 1, 2020, at a cost of 120,000. The company estimated that the machine will have a residual value of 12,000. The machine is expected to be used for 6-year life. Instructions: Compute the depreciation expense under straight-line for the year ended December 31st: -2020 (8 points) and -2021 (7 points).

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