7. More Value purchases a new piece of equipment for $22,700. The company pays $750 for delivery fees and S1,100 for necessary testing. The company expects to produce 20,500 units with the equipment. a. Calculate the depreciation per unit of output. Round to the nearest cent. b. Prepare the journal entry for 2015's calendar year-end if the company uses the equipment to manufacture 1,250 units 8. Mike's Tires uses the double-declining-balance method to calculate depreciation for its truck. The company purchased the truck on September 2, 2015, for $15,200 and a $250 delivery fee. The company expects the truck to last 20 years and have a $1,700 salvage value at that date. Calculate the following a. Double-declining balance rate b. Depreciation expense for 2015 c. Depreciation expense for 2016 23 9. Smokin' Bill's purchases a piece of equipment for $7,900 on January 1, 2015 The company also pays $1,200 for testing, $900 for permits for use, and $700 for damage due to mishandling. The company expects the equipment to last 7 years with a $1,000 salvage value and uses double-declining balance method. Prepare a schedule to show the depreciation expense for the full life of the equipment Round the double-decliningbalance rate to one decimal place 10 More Value purchases a new piece of machinery for $17,600 in 2015. The company also pays S1,000 for delivery, $900 for testing, and $700 related to permits for use. More Value expects for the machinery to last 4 years, with a $1,500 salvage value. Prepare a schedule to show the depreciation expense over the life of the equipment using the double-declining balance method. Round the rate to one decimal place. 11. Big Sips received new information at the beginning of 2017 for an asset that was originally purchased for $45,200 on January 1, 2015. The original expected useful life was 7 years, with an estimated residual value of $4,500. Using the information, Big Sips now estimates the machine will last another 10 years with a residual value of $5,000. If Big Sips uses the straight-line method to determine depreciation expense, calculate the following: a. Accumulated depreciation to date (round to the nearest whole dollar) b. Revised annual depreciation expense (round to the nearest whole dollar)