1) On January 1 of Year 1 , a company acquired and placed in service a machine at a cost of $800,000. It has been estimated that the machine has a service life of five years and a salvage value of $100,000. Using the Straight-Line method of depreciation, complete the schedule below showing depreciation amounts for all five years. Year 1 2 3 4 5 2) A company had income before interest expense and income taxes of $185,900, and its interest expense is $55,000. Calculate the company's times interest earned ratio. 3) Santa Barbara Express has 1 sales employee, who earns $5,000 per month and is paid on the last working day of the month. The employee's wages are subject to FICA social security taxes of 6.2% and Medicare taxes of 1.45% on all wages. Withholdings also include federal income tax of $800 for the employee and monthly medical insurance premiums of $110 for the employee. The employer payroll taxes for Santa Barbara Express include FICA taxes, federal unemployment taxes of 0.6% of the first $7,000 paid to the employee, and state unemployment taxes of 5.4% of the first $7,000 paid to the employee. (Assume that the employee has not reached the unemployment limit of $7,000.) Calculate the net pay for 1 Sales emplovee. 4) Avon corporation began business this year. The company is authorized to issue 500,000 shares of $100 par value, 6%, noncumulative, preferred stock, and 1,000,000 shares of no-par common stock. The following selected transactions occurred during this year: March 5 Issued 250 shares of preferred stock for $102 cash per share. July 15 Exchanged 750 shares of common stock for $12,000 in legal services incurred in the organization of the company. Prepare journal entries to record these transactions. 5) Record the following transactions of Naches Corporation in general journal form: (a) Reacquired 8,000 of its own $3 par value common stock at $20 cash per share. The stock was originally issued at $15 per share. (b) Sold 2,000 shares of the stock reacquired under part (a) at $23 cash per share. (c) Sold 3,000 shares of the stock reacquired under part (a) at $19 cash per share. 6) The following information is available for the Brookstone Company: Assets : Additional information: (1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired. (2) Old machinery with an original cost of $45,060 was sold for $2,520 cash. (3) New machinery was purchased for $81,060 cash. (4) Cash dividends of $40,320 were paid. (5) Additional shares of stock were issued for cash. Prepare a complete statement of cash flows for Year 2 using the indirect method