10 years PROBLEM 3 (DepreciationSYD, Act., SL, and DDB) The following data relate to the Machinery account of Euros, Inc. at December 31, 2020 A B D Original cost $65,000 $84,000 $62,000 $40,000 Year purchased 2016 2019 2018 2017 Useful life 10 years 58,000 hours 12 years Salvage value $ 5,000 $ 2,800 $ 4,400 $ 5,000 Depreciation Sum-of-the- Straight- 150% declining- method years'-digits Activity line balance Accum. depr. through 2020 $37,091 $14,000 $ 9,600 $19,520 *In the year an asset is purchased, Euros, Inc. does not record any depreciation expense on the asset. In the year an asset is retired or traded in, Euro, Inc. takes a full year's depreciation on the asset. The following transactions occurred during 2021: (a) On July 1, Machine D was sold for $6,000 cash. The company's bookkeeper recorded this retirement in the following manner in the cash receipts journal. Cash 6,000 Machinery (Machine D) 6,000 (b) On December 31, it was discovered that a machine purchased in Dec 31, 2020 had been expensed completely in that year. This machine cost $68,000 and has a useful life of 8 years and no salvage value. Management has decided to use the double-declining-balance method for this machine, which can be referred to as "Machine E." (c) On December 31, it was determined that Machine B had been used 4,600 hours during 2021. (d) On December 31, before computing depreciation expense on Machine C, the management of Euros, Inc. decided the useful life remaining from January 1, 2021, was 6 years. Instructions Prepare the necessary correcting entries for the year 2021. Record the appropriate depreciation expense on the above- mentioned machines. 10 years PROBLEM 3 (DepreciationSYD, Act., SL, and DDB) The following data relate to the Machinery account of Euros, Inc. at December 31, 2020 A B D Original cost $65,000 $84,000 $62,000 $40,000 Year purchased 2016 2019 2018 2017 Useful life 10 years 58,000 hours 12 years Salvage value $ 5,000 $ 2,800 $ 4,400 $ 5,000 Depreciation Sum-of-the- Straight- 150% declining- method years'-digits Activity line balance Accum. depr. through 2020 $37,091 $14,000 $ 9,600 $19,520 *In the year an asset is purchased, Euros, Inc. does not record any depreciation expense on the asset. In the year an asset is retired or traded in, Euro, Inc. takes a full year's depreciation on the asset. The following transactions occurred during 2021: (a) On July 1, Machine D was sold for $6,000 cash. The company's bookkeeper recorded this retirement in the following manner in the cash receipts journal. Cash 6,000 Machinery (Machine D) 6,000 (b) On December 31, it was discovered that a machine purchased in Dec 31, 2020 had been expensed completely in that year. This machine cost $68,000 and has a useful life of 8 years and no salvage value. Management has decided to use the double-declining-balance method for this machine, which can be referred to as "Machine E." (c) On December 31, it was determined that Machine B had been used 4,600 hours during 2021. (d) On December 31, before computing depreciation expense on Machine C, the management of Euros, Inc. decided the useful life remaining from January 1, 2021, was 6 years. Instructions Prepare the necessary correcting entries for the year 2021. Record the appropriate depreciation expense on the above- mentioned machines