1. Ayayai Company purchased a new machine on October 1, 2022, at a cost of $110,000. The company estimated that the machine will have a salvage value of $10,000. The machine is expected to be used for 10,000 working hours during its 4-year life. Compute the depreciation expense under straight-line method for 2022.

2. Here are selected 2022 transactions of Ayayai Company.

Jan. 1 Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $63,000 and had a useful life of 10 years with no salvage value.

June 30 Sold a computer that was purchased on January 1, 2019. The computer cost $39,000 and had a useful life of 5 years with no salvage value. The computer was sold for $15,900 cash.

Dec. 31 Discarded a delivery truck that was purchased on January 1, 2018. The truck cost $38,340. It was depreciated based on a 6-year useful life with a $3,000 salvage value.

Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of where applicable. Ayayai Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2021.) (List all debit entries before credit entries. Record journal entriesin the order presented in the problem. If no entry isrequired,select "No Entry" for the account titles and enter 0 for the amounts.