. A company's property records revealed the following information about its plant assets: Machine Salvage Purchase Depreciation Method No. Cost Value Date and Estimated Life No. $42 $42,000 $3,000 10/01 Straight-line (3 years) 86,000 8,600 7/01 Double-declining- balance (5 years) Calculate the depreciation expense for each machine for the year ended December 31 for Year I and for the year ended December 31 for Year 2. Machine 1: Year 1 Year 2 Machine 2: Year 1 Year 2 2. On January 1, Year 1, Acadia purchased a computer system that cost $1,480,000. The estimated useful life of the computer is 3 years and salvage value is $40,000. Straight-line depreciation is to be used. On January 1, Year 2, the company determined that the estimated useful life of the computer would be 4 years instead of 3 years. The estimated salvage value will only be $10,000. Prepare the journal entry to record depreciation expense for Year Prepare the journal entry to record depreciation expense for Year 2. On April 1, Year 5 a company discarded a machine that had cost $10,000 and had accumulated depreciation of $8,000 as of December 31, Year 4. The asset had a 5-year life and S0 salvage value. Prepare the journal entries to record the updating of the depreciation expense and discarding of this asset in Year 5. 3. On December 1, Gates Company borrowed $45,000 cash from FirstBank by signing a 90- day, 9% note payable. 4. a. Prepare Gate's journal entry to record the issuance of the note payable. b. Prepare Gate's journal entry to record the accrued interest due at December 31. c. Prepare Gate's journal entry to record the payment of the note on March 1 of the next year