Carleton Corporation purchased machinery on January 1, 2021, at a total cost of $90,000.Carleton paid $15,000 in cash and signed a 3-year note payable for the balance.Estimated residual value is $10,000, estimated life of the machinery is 5 years or 50,000 hours.

Required:

a)Prepare the journal entry to record the purchase of the machinery.

b)Compute depreciation expense for 2021 under straight-line, double-declining balance, and units-of-production methods.The machine was used for 8,000 hours in 2021.

c)Independent from part 1: Assume the company has selected and has been recording depreciation using the straight-line method.On December 31, 2024 (after depreciation for 2024 has already been recorded), the machinery is sold for $37,000 in cash.Prepare the journal entry to record the sale of the machinery.