Melon Corporation bought a used machine for use in operations from Blue River Corporation on 1 August 2015. To acquire it, Melon Corporation borrowed $100,000 from a local bank, signing a 6% one-year note and paid $38,000 cash. It has an estimated useful life of two years and an estimated residual value of $6,000. Half-year convention is adopted. The financial year-end date is 31 December. Required: (a) Prepare journal entries to record the purchase of the machine on 1 August 2015. (b) Prepare the following depreciation schedule by using straight-line method for the used machine: Year Book Value Computation Depreciation Expense ($) Accumulated Depreciation ($) ($) 2015 2016 2017 (c) On 1 April 2016, this used machine was out of order. It was sold for $30,000 cash. Assuming the depreciation expense of this used machine has been recorded up to the date of disposal, prepare the journal entries to record the disposal