Super Cleaner purchased an automatic dry cleaning machine for $ 104,000 on January 1, 2017. The estimated useful life of the cleaning machine was 5 years, with an estimated residual value of $4,000.

QUESTION 4 (15 marks) Super Cleaner purchased an automatic dry cleaning machine for $104,000 on January 1, 2017. The estimated useful life of the cleaning machine was 5 years, with an estimated residual value of $4,000. Required: a Compute the depreciation expense of this dry cleaning machine for Years 2017 and 2018 under cach of the methods listed below: (1) Straight-line (2 marks) (ii) 150% declining-balance (3 marks) b. In Year 2018, Super Cleaner bought a new dry cleaning machine with the following information: (i) The list price of the machine was $285,000. (ii) Freight charges for delivery of the machine totalled $1,251. (iii) Installation costs related to the machine amounted to $6,492. (iv) During installation, one of the machine parts was accidentally damaged by a staff. It cost the company $825 to repair this damage. Compute the total costs debited to the Machinery Account (2 marks) c. On January 1, 2016, Super Cleaner purchased a truck costing $200,000, with an estimated salvage value of $20,000. The estimated useful life of the truck was 5 years. The truck depreciated by using 200% declining-balance method. The Company sold the truck on December 31, 2017 for $60,000. Prepare the general journal entries for the sale of the truck. Explanations for each journal entry are NOT required. (4 marks) d. State two reasons why a business depreciates its noncurrent assets. (4 marks)