1. On April 1 of the current year, a company purchased and placed in service a machine with a cost of $240,000. The company estimated the machine's useful life to be four years or 60,000 units of output with an estimated salvage value of $60,000. During the current year, 12,000 units were produced Prepare the necessary December 31 adjusting journal entry to record depreciation for the current year assuming the company uses: a. The straight-line method of depreciation b. The units-of-production method of depreciation c. The double-declining balance method of depreciation 2. On April 1, Year 1, Astor Corp purchased and placed a plant asset in service. The following information is available regarding the plant asset: Acquisition cost $130,000 Estimated salvage value $15,000 Estimated useful life 5 years I. Make the necessary adjusting journal entries at December 31, Year 1, and December 31, Year 2 to record depreciation for each year under the straight-line depreciation method. 3. A company purchased and installed equipment on January 1 at a total cost of $72,000. Straight-line depreciation was calculated based on the assumption of a five-year life and no salvage value. The equipment was disposed of on July 1 of the fourth year. The company uses the calendar year. A. Prepare the general journal entry to update depreciation to July 1 in the fourth year. B. Prepare the general journal entry to record the disposal of the equipment under each of these three independent situations: 1. The equipment was sold for $22,000 cash. II. The equipment was sold for $15,000 cash. III. The equipment was totally destroyed in a fire and the insurance company settled the claim for $18,000 cash 4. On January 2, 2010, a company purchased a delivery truck for $45,000 cash. The truck had an estimated useful life of seven years and an estimated salvage value of $3,000. The straight-line method of depreciation was used. Prepare the journal entries to record depreciation expense and the disposition of the truck on September 1, 2014, under each of the following assumptions: 1. The truck and S45,000 cash were given in exchange for a new delivery truck that had a cash price of $60,000. This transaction has commercial substance. II. The truck and S40,000 cash were exchanged for a new delivery truck that had a cash price of $60,000. This transaction has commercial substance. 5. A company purchased land with a building for a lump-sum cost of $2,570,000 (S500,000 paid in cash and the balance on a long-term note). It was estimated that the land and building had market values of $600,000 and $2,400,000, respectively. L. Determine the cost to be apportioned to the land and to the building and prepare the journal entry to record the acquisition. 6. A company purchased mining property for $4,875,000 containing an estimated 15,000,000 tons of ore. In Year 1, it mined 689,000 tons of ore and in Year 2, it mined 935,000 tons. Calculate the depletion expense for Year 1 and Year 2 and determine the book value of the property at the end of Year 2. 7. A company traded an old forklift for a new forklift, receiving a $13,500 trade-in allowance and paying the remaining S47,200 in cash. The old forklift had cost $43,000, a 5-year useful life and a $5,000 salvage value. Straight-line accumulated depreciation of $27,200 had been recorded as of the exchange date. a. What was the book value of the old forklift on the date of the exchange? b. What amount of gain or loss (indicate which) should be recognized in recording the exchange, assuming the transaction has commercial substance? c. What amount should be recorded as the cost of the new forklif