ABC Company purchased on January 1, 2016 a new machine for $50,000. It paid $600 sales tax and delivery expense of $200 on this purchase. It also incurred another $1,200 in expenses for machine testing and alignment.

a. Make the entry for the purchase of this item assuming it was acquired for cash.

b. Assuming that ABC records a full years depreciation during the year of acquisition what entry would be made to record depreciation expense for the full year at December 31, 2016 using 1) the double-declining balance method and 2) using also the straight-line method. The useful life of the asset is 5 years with no residual or salvage value.

c. What entries would ABC make on December 31, 2016 if it sold the machine for $36.000 using 1) the double declining balance method of depreciation and 2) using the straight line method?