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Universal, Inc. paid cash on January $1,2024,$ for machinery with an invoice cost of $$120,000.$ The company also paid an additional $$2,000$ in sales tax, $$4,000$ in delivery charges, and $$4,000$ for installation. The machine is expected to be used for five years with a salvage value of $$10,000.$ Lastly, the company paid cash of $$3,500$ for routine maintenance and repairs during $2024.$

Compute the depreciation expense for the first year and the net book value at the end of year $1$ using both the straight$-$line and double$-$declining$-$balance depreciation methods.

Record the journal entries for the purchase of the machinery and the maintenance costs.

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