1. On January 1, 2017, XYZ Company purchased the following two machines to use in its production process. Machine A: The cash price of this machine was $48,000. Related expenditures included: sales tax $1,700, shipping costs $150, insurance during shipping $80, installation and testing costs $70, and $100 of oil and lubricants to be used with the machinery during its first year of operations. XYZ estimates that the useful life of the machine is 5 years with a $5,000 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used. Machine B: The recorded cost of this machine was $180,000. XYZ estimates that the useful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period. Instructions A. Prepare the following for Machine A. a. The journal entry to record its purchase on January 1, 2017 b. The journal entry to record annual depreciation at December 31, 2017 B. Calculate the amount of depreciation expense that XYZ should record for Machine B, each year of its useful life under the following assumptions. C. XYZ uses the declining-balance method. XYZ uses the units-of-activity method and estimates that the useful life of the machine is 125,000 units. Actual usage is as follows: 2017, 45,000 units; 2018, 35,000 units; 2019, 25,000 units; 2020, 20,000 units