Chapter 8 Homework A company paid $742,600 for a machine purchased on January 1. In addition to the purchase price, they paid $4,500 for electrical connections necessary for installation and $1,400 for delivery. Unfortunately, during transportation, the company's truck driver was pulled over for speeding. The ticket was $150. costs to test the equipment and train employees on how to use the machine amounted to $1,500. The machine is expected to last five years or 20,000 hours with a salvage value of $75,000. During the machine's five year life its hourly usage was: 3,500; 4,000; 4,500; 5,000; and 3,000 hours. 1. (a) Calculate the total cost of the machine. (S points) late the annual depreciation expense for each year of the machine's life using straight- line, units-of-production and double-declining balance. Write your answers in the table below. Show your work to maximize points earned! (28 points) Straight-line Units-of production Double-declining balance ear/ Year 4 otals (c) If the truck was purchased on April 14th instead of January 1st, indicate the depreciation amount for the first year using straight-line depreciation. (2 points) (d) The company sold the truck on September 28 of the third year for $350,000 cash. Journalize the sale assuming the straight-line method of depreciation was used. (5 points)