Question 3 On January 1, 2015, Solid Corp. purchased a new heavy digging machine for $1,250,000 in cash. The machine has a useful life of 12,500 hours and according to the company's policy, all the machines must be sold for cash at the end of their useful lives. Used machines are expected to be resold for 14 of their original price. Solid Corp. uses the units-of-output depreciation method. Instructions: a. Assuming that the machine was used as follows, prepare a schedule showing annual depreciation expense and accumulated depreciation for each year (6 points) 2015 3,250 hours 2016 3,500 hours 2017 3,000 hours 2018 2,750 hours b. Show how the asset and related accumulated depreciation would appear on the balance sheet at December 31, 2016. (4 points) c. Prepare journal entries to record the asset's initial acquisition, depreciation entries only for year 2016 and all the entries relevant to the asset's final disposal at the end of year 2018. (5 points) d. Explain to the CFO what the effects on the net income would be during the 4 years if the company used a straight depreciation under 4 years of useful life and the same selling price. (5 points)