ASAP

1. On June 1, Gannon Company purchases and installs a new machine costing $275,000 with a five year life and an estimated $25,000 salvage value. Management estimates the machine will last 800,000 hours for its life. Actual hours used in the first three years was 125,500 hours in the first year, 236,000 hours in the second year, and 75,000 hours in the third year. Compute the depreciation expense (show all work) for each of the first two years under the following methods: STRAIGHTUNE Year One Year Two UNITS OF PRODUCTION Year One Year Two DOUBLE DECLINING BALANCE Year One Year Two 2. A company purchased equipment costing $250,000 on Jan 10 with cash. The equipment had a 10 -year life with a salvage value of $25,000. The company used straight line depreciation. On January 5 of the seventh year, the company sold the equipment for $85,000. Showing all work, answer the following questions: a. Journalize the purchase of the equipment. b. What was the depreciable basis of the equipment? c. What was the depreciation expense for each year? d. Joumalize the depreciation expense for the first year. c. What was the accumulated depreciation before the sale? f. What was the gain or loss on the sale? g. Journalize the disposition of the equipment. 3. Using the same information as shown in Question 2, answer the following questions showing all work: a. What was the gain or loss assuming the company sold the equipment for $125,000 ? b. Journalize the disposition of the equipment. 4. A company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000 to access the mine, which is estimated to hold 1,000,000 tons of ore. The estimated value of the land after the ore is removed is $200,000. Answer the following questions showing all work: a. Journalize the acquisition of the ore mine. b. Journalize the entry for the first year if 180,000 tons of ore are mined. 5. At the beginning of the year, a company purchased a patent for 5100,000cash. The company estimated the patent's useful life is 10 years. Answer the following questions showing all work: a. Journalize the purchase of the patent. b. Calculate and journalize the amortization for the first vear assuming the company kept the patent all year