2017 $21.500 (b) It machine 2 had been parched on April 1 instead of Januy I, what would be the depreciation expense for this machine in (1) 2015 (7) 2016? P10x On January 1, 2017, Din Company purchased the following two machines for use Compute degreration in its production process different methode 10) Machine A: The cash price of this machine was $46,500 Related expenditures included: sales tax $2,200, shipping cents $175, insurance during shipping $75, installation and testing costs $50, and $90 of oil and lubricants to be used with the machinery during its first year of operation Dill estimates that the wiscul life of the machine is 4 years with a $5,000 salvage value remaining at the end of that time period Machine B: The recorded cost of this machine was $120.000. Dill estimates that the useful life of the machine is 4 years with a $8,000 salvage value remain- ing at the end of that time period. 2 10 Plant Assets, Natural Resources and Intangible Assets (2) 11.000 Instructions (a) Prepare the following for machine A (1) The journal entry to record its purchase on January 1, 2017 (2) The journal entry to record annual depreciation at December 31, 2017, assuming the straight-line method of depreciation is used. (b) Calculate the amount of depreciation expense that Dill should record for machine E cach year of its useful life under the following assumption (1) Dill uses the straight-line method of depreciation. (2) Dill uses the declining-halance method. The rate used is twice the straight-line rate (3) Dill uses the units-of-activity method and estimates the useful life of the machine is 25,000 units. Actual usape is as follows. 2017, 6,500 units: 2018, 7.500 units 2019. 6,000 units: 2020, 5.000 units ( Which method used to calculate depreciation on machine Breports the lowest amoun of depreciation expense in year 1 (2017) The lowest amount in year 4 (2020Thu lowest total amount over the 4-year period P10-3C On January 1, 2017, Dill Company purchased the following two machines for use Compute depreciation under in its production process. different methods. Machine A: The cash price of this machine was $46,500. Related expenditures included: (LO 2) sales tax $2,200, shipping costs $175, insurance during shipping $75, installation and testing costs $50, and $90 of oil and lubricants to be used with the machinery during its first year of operation. Dill estimates that the useful life of the machine is 4 years with a $5,000 salvage value remaining at the end of that time period. Machine B: The recorded cost of this machine was $120,000. Dill estimates that the useful life of the machine is 4 years with a $8,000 salvage value remain- ing at the end of that time period. 2 10 Plant Assets, Natural Resources, and Intangible Assets Instructions {a) Prepare the following for machine A. (1) The journal entry to record its purchase on January 1, 2017 (2) The journal entry to record annual depreciation at December 31, 2017, assuming the straight-linc method of depreciation is used. b) Calculate the amount of depreciation expense that Dill should record for machine B each year of its uselul life under the following assumption (Dill uses the straight-linc method of depreciation. (2) Dill uses the declining-balance method. The rate used is twice the straight-line rate (3) Dill uses the units-of-activity method and estimates the useful life of the machine is 25,000 units. Actual usage is as follows: 2017, 6 500 units, 2018, 7.500 units; 2019, 6,000 units: 2020, 5.000 units. (c) Which method used to calculate depreciation on machine B reports the lowest amount of depreciation expense in vear 1 (2017). The lowest amount in vear 4 (2020)2 The lowest total amount over the 4-vear period? 10.Catimin AS Commented with SDA