Clover Inc. purchases a machine on January 31, 2014 and puts it into use immediately. The machine cost $28,000 and has a salvage value of $4,000. It has a 4-year useful life. The companys fiscal year ends on December 31.

Show Work.

a. Calculate the carrying value of the machine on December 31, 2015 under each of the following methods:

i.Straight-line

ii.Double-declining balance

iii.Sum-of-the-years digits.

b. Prepare the journal entry on March 31, 2016 when the machine is sold for $4,000 under each of the following methods:

i.Straight-line

ii.Double-declining balance

iii.Sum-of-the-years digits.

c. Prepare the journal entry on March 31, 2016 when the machine is sold for $12,000 under each of the following methods:

i.Straight-line

ii.Double-declining balance

iii.Sum-of-the-years digits.