1. Feng Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $42,300. The machines useful life is estimated at 10 years, or 363,000 units of production. It has a $6,000 residual value. During its second year, the machine produces 35,000 units. Determine the machine's second year depreciation under the straight line method.

2. Using the above information, determine the machine's second year depreciation using the units of production method.

3. Using the above information, determine the machine's second year depreciation using the double decline balance method.

4. On April 1, 2014, Stone's Backhoe Company purchases a new machine for $250,000. The machine is expected to last five years, and have a residual value of $25,000. Compute the depreication expense for both 2014, and 2015 assuming the company uses the straight line method.

5. Using the information above, compute the depreciation expense for both 2014 and 2015 assuming the company uses the double decline balance method.

6. GBSB pays $440,000 for real estate plus $23,320 in closing costs. The real estate consists of land appraised at $180,400, land improvements at $82,000 and a building appreaised at $147,6000. Allocate the total cost among the three purchased assets.

7. GBSB Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new campus. The negotiated purchase price is $252,000 for the lot plus $147,000 for the old building. GBSB pays $27,600 to tear down the old building and $40,800 to fill and level the lot. It also pays a total of $1,494, 751 in construction costs - this amount consists of $1,406,000 for the new building and $88,751 for lighting and paving a parking area next to the building. Prepare journal entries to record these costs incurred by GBSB, all of which are paid in cash.