Part 4: Reporting & Interpreting Property, Plant & Equipment Subpart 1: Covey Company purchased a machine on January 1, 2022, by paying cash of $250,000. The machine has an estimated useful life of five years, is expected to produce 500,000 units, and has an estimated residual value of $25,000. Required: Calculate depreciation expense to the nearest whole dollar for 2023 (the second year) ofthe machine's useful life unden a. Double declining-balance method. Answer: b. Ifthe machine was used to produce and sell 120,000 units in 2022 and 158,000 units in 2023, what would be the depreciation expense for 2023 using the units-of-production method? Answer: Subpart 2: A company purchased equipment for $400,000 and has depreciated it using the straight-line method for the past 5 years when its original life was estimated to be 10 years with a $100,000 residual value. The equipment's utility to the company has declined because management expects the equipment to generate net cash flow over the remaining yea rs of $150,000. The fair value of the assets at the end of the fifth year was $180,000. Required: If the asset has been impaired, record the journal entry to record the impairment. General Journal