Question C3 Part I Thomson Technology Corporation bought a machine to produce memory chips for $1,600,000 on 28 June 2017. The management of the company was of the opinion the machine had an estimated residual value of $200,000, and had estimated useful life of four years, or had an estimated operation output of 400,000 hours. The year-end date of the company is 31 December. Required: (a) Compute the depreciation expenses on this machine in 2017 and 2018 respectively by using the following methods: (i) (2 marks) Straight-line (with depreciation calculated to the nearest whole month); (ii) 200%-declining-balance (with full year depreciation in the acquisition year); and (2 marks) (iii) Units-of-output method (hours of operation 32,000 in 2017; 48,000 in 2018). (2 marks) (b) Part II If the company uses the depreciation method (a)(ii) above, compute the depreciation expenses for 2019 and 2020. (2 marks) In 2015, Lowe Corporation purchased a machine for $596,000. It had an estimated useful life of five years and a $68,000 residual value. The Company uses straight-line depreciation method and applies the half-year convention. On 1 September 2018, the Company sold the machine for $260,000 cash. The Company adjusts its accounts annually with the year-end on 31 December. Required: (a) Prepare the journal entries to record the depreciation for 2018; and (b) Prepare the journal entries at the time of disposal. (2 marks) (4 marks)