Question B3 (36 marks) Part I (30 marks) On 25 March 2020, Miracle Company bought a machine at $1,350,000 with an estimated useful life of 15 years and no residual value. The machine is expected to operate 270,000 hours. The company adjusts its account annually with the year-end date on 31 December. Part II (6 marks) MCC company uses straight-line depreciation (round to the nearest whole month) and adjusts its accounts annually on 31 December. On 1 January 2016, MCC purchased a van for $450,000 which has an estimated useful life of 9 years and no residual value. On 1 January 2021, the company incurred the following expenditure on the van: (1) $1,500 for annual maintenance and servicing (ii) $60,000 to upgrade the van with a new and more powerful engine $1,000 to paint the van after 5 years of use. On 1 January 2021, the useful life of the van was revised to 13 years with a residual value of $15,000. Required: (2 marks) (a) What is the book value of the van as at 31 December 2020? (6) Journalize annual depreciation of the van on 31 December 2021. Show workings. (4 marks)