5 On April 1, Otisco, Incorporated paid Garcia Publishing Company $1,548 for 36-month subscriptions to several different magazines. Otisco debited the prepayment to a Prepaid Subscriptions account, and the subscriptions started immediately. What amount should appear in the Prepaid Subscription account for Otisco, Incorporated after adjustments on December 31 of the second year assuming the company is using a calendar-year reporting period and the previous year adjustment had been made? $645. $0. $1,548. $516. $387. QUESTION 8 A machine costing $75,000 is purchased on January 1, Year 1. The machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. Double-declining-balance depreciation is used. If the machine is sold on January 1, Year 4 for $9,000, the journal entry to record the sale will include: OA credit to loss on sale for $1,000. A credit to accumulated depreciation for $65,000. A credit to gain on sale for $1,000. A debit to loss on sale for $1,000. A credit to cash for $9,000