2. Prepare the entry to record depreciation expense at the end of year 1 assuming the following. (If no entry is required for a transactionlevent, select "No journal entry required in the first account field.) ESTIMATES Machine Life R esidual Value 6 years $2,400 63,000 hours 2,300 7 years 1,900 Depreciation Method Straight-line Units-of-production Double-declining balance View transaction list Journal entry worksheet Record the depreciation expense for year 1. Note: Enter debits before credits Debit Credit General Journal Transaction (The following information applies to the questions displayed below.) During 2015, Merkley Company disposed of three different assets. On January 1, 2015, prior to their disposal the accounts reflected the following: Asset Machine A Machine B Machine C Original Cost $ 42,000 45,000 75,500 Residual Value $3,000 4,000 5,700 Estimated Life 6 years 10 years 16 years Accumulated Depreciation (straight line) $ 26,000 (4 years) 32,800 (8 years) 52.350 (12 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 1, 2015, for $15.700 cash. b. Machine B: Sold on December 31, 2015, for $8,700; received cash. $2,300, and a $6.400 interest-bearing (12 percent) note receivable due at the end of 12 months c. Machine C on January 1, 2015, this machine suffered irreparable damage from an accident on January 10, 2015, a salvage company removed the machine at no cost. 1.65 points