4. Hella Fine Co. purchased a piece of production machinery for $600,000. It expects the machine will operate for 8 years and produce 1,000,000 units over its useful life. At the end of this useful life, HFC expects it will be able to sell the machine for 30,000. Calculate the depreciation expense for Years 1 and 2 under the double-declining-balance method. 5. Suppose Bold City pays $180,000 on January 1 to acquire a patent on a new manufacturing process used to make beer. Bold City believes this patent's useful life is only 8 years because it is likely that a new, more efficient process will be developed within that time. a. How much is amortization expense per year? b. The acquisition and year-end amortization entries for this patent are: 6a. Assume that Pegasus Gold owns gold reserves that cost $4,500,000. A geological study estimates that the reserves hold 6,000 ounces of gold. Depletion expense per ounce of gold extracted is: b. Assume 800 ounces of gold are removed and sold during the month. The depletion entry for the month is