A factory machine was purchased for $140,000 on January 1, 2023. It was estimated that it would have a $28,000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 40,000 hours in the five years. If the actual number of machine hours ran in 2023 was 4,000 hours and the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2023 would be $11,200. $28,000. $22,400. $14,000. Thayer Company purchased a building on January 2 by signing a long-term $3,360,000 mortgage with monthly payments of $30,800. The mortgage carries an interest rate of 10 percent. The entry to record the first monthly payment will include a credit to the Mortgage Payable account for $30,800. debit to the Interest Expense account for $28,000. debit to the Cash account for $30,800. credit to the Cash account for $28,000. On January 1, Thompson Corporation issued $4,000,000, 14%, 5-year bonds with interest payable on December 31. The bonds sold for $4,288.384. The market rate of interest for these bonds was 12%. On the first interest date, using the effective- interest method, the debit entry to Interest Expense is for $502,324 $560,000 $514,606 $480,000