5. On January 1, 2021 Lucy Company purchased machinery costing $141,250 cash. The estimated useful life is 10 years and the estimated salvage value is $10,000. Estimated machine hours are 75,000 d. Journalize the purchase e. Determine the depreciation rate per machine hour t. Calculate annual depreciation for year 1 and year 2 if machine hours are 18,500 and 13,000 respectively. g. What is the book value of the asset at the end of year 2 ? 4. On January 1,2020 Kami Co. purchased equipment for $110,000 cash. The useful life is expected to be 9 years with an estimated salvage value of $11,000. At the end of year 8 , Keaubie decided to increase the useful life to 12 years (in total) and reduce the salvage value to $5,000. a. Lournalize the purchase b. Journalize year one's depreciation using the straight-line method c. What is the new depreciation amount beginning with year nine? 3. Lucy Company purchased equipment whose selling price was $155,000. The following costs were also incurred: sales tax: $12,400; transportation: $3,500; installation: $3,000; insurance during transit: $1,200. Annual insurance totaled $10,000. Journalize the purchase of the equipment. Lucy paid cash. 2. On January 1 Equipment was purchased for $188,000 cash. It had an estimated salvage value of $8,000 and an estimated useful life of 9 years. Lournalize the purchase and the first year's depreciation using the straight-line method. Accounting 2102 Chapter 9 - Activity II nstructions: Journalize each transaction below: 1. Installed hydraulic equipment on vehicle, $7,500 (cash): replaced two bad tires on Truck, $675 (paid cash): Rebuilt motor on Truck, $8,900 (cash)