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Monica Company purchased an equipment on January 1,2020 for $840,000. It is estimated that the equipment will have a $40,000 residual value at the end of its 8 -year useful life. It is also estimated that the equipment will produce 500,000 units over its 8-year life. Instructions: Answer the following independent questions. (Show computations, if possible) a. If the company uses the straight-line depreciation method, what are the depreciation expenses for 2020 , and the book value of the equipment at the end of b. If 54,000 units of product are produced in 2020 and 90,000 units are produced in 2021 , and the company uses the units-of-activity depreciation method, what are the depreciation expenses for 2020 and 2021 ? c. If the company uses the double-declining-balance method of depreciation, what are the depreciation expenses for 2020 and 2021? c. On January 1, 2022, the company decided that the equipment has a total useful life of 10 years with a residual value of $20,000. The straight-line method of depreciation is used. i. Compute the revised annual depreciation expense for 2022. ii. At the end of 2022 , Monica sold the equipment for $583,000. Determine the gain or loss on disposal of equipment and prepare the journal entry to record this transaction

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