2. On January 1, 2015, SAS Corp. purchased and placed in service a machine. The following information is available regarding the machine, show all calculations: (20 points)

Acquisition cost ...................................................... $130,000

Estimated salvage value .......................................... $15,000

Estimated useful life ............................................... 5 years

a. Using straight line depreciation, make the necessary adjusting journal entry at December 31, 2015.

b. What would be the balance of the accumulated depreciation account after the 4th year adjusting entry?

c. How would the machine and accumulated depreciation be presented on the balance sheet after the 4th year adjusting entry?

d. The machine is sold on January 1st 2019 for $50,000 cash, make the entry to record the gain or loss on sale.