AZA Company purchased a machine on July 1, 2019. The machine cost $400,000 and has an estimated residual value of $40,000. The expected useful life is 8 years. The machine is to be used for 100,000 machine hours. AZAs year end is December 31. Required:

a. Calculate the depreciation expense for 2019 and 2020 using the straight-line method. Also list the Accumulated Depreciation Balances at December 31, 2019 and December 31, 2020.

b. Calculate the depreciation expense for 2019 and 2020 using the units-of-production method. The machine was used for 8,000 machine hours in 2019 and 23,000 machine hours in 2020.

c. Calculate the depreciation expense for 2019 and 2020 using the double-declining-balance method.

d. Determine the book value of the machine at December 31, 2019 under the (a) straight-line method and (b) units-of-production, and (c) double-declining-balance method.

e. Write the journal entry for recording depreciation expense for year ended December 31, 2019 using the double declining balance depreciation method.