Phillips Ltd$.$ purchased a machine on $26$ March $203$ for $$98,000$ and began to use it immediately. The estimated useful life of the machine is $5$ years, and it has an expected residual value of $$10,300$ at that time. Phillips uses straight$-$line deprion.

Required:

$1$& $2.$ Calculate annual depreciation for $203$ through $208$ assuming that depreciation is calculated to the nearest month using three accounting conventions:

a$.$ Half$-$year convention

b$.$ Full$-$first$-$year convention

c$.$ Final$-$year convention

$\backslash$table$[[$Year$,$Month,Half year,Full first year,Final year$],[203,,,,],[204,,,,],[205,,,,],[206,,,,],[207,,,,],[208,,,,]]$

Calculate the gain or loss on disposal assuming that the asset is unexpectedly sold for $$6,300$ at the end of $206,$ using net book value from requirement $1,$ and then from the three alternatives in requirement $2.$

$\backslash$table$[[$Year$,$Month,Half Year,Full First Year,Final Year$],[$Proceeds$,20$X$6,,,,],[$Net book value, $206$