DJ's Machine Tool purchased a new piece of equipment on August 1, 2018. The Company paid $750,000 for the equipment, and also paid $20,000 to Speedy Freight for delivery of the equipment to its facility. Once the press arrived, DJs incurred expenditures of $18,000 for installation and $3,000 to test the equipment was operating properly. The company also prepaid for the first two year's of preventative maintenance service, at a cost of $2,200. DJ's expects that the press has a useful life of 7 years and will be run a total of 28,000 hours over that timeframe. The equipment has an estimated salvage value of $36,000 Reminder-show your work for partial credit! Round answers to nearest cent. 1. What amount should the company capitalize for this equipment at August 1, 2018? 2. If the company uses the straightline method to depreciate the press, complete the following chart for the first two years of usage of the equipment: show Depreciation Expense- formula Depreciation Expense Accumulated Depreciation Year 2018 2019 3. What is the Net Book Value of the machine at the end of December 2019? 4. Prepare the journal entry if, at the end of the 2023, DJ's decides to sell the equipment for $185,000. (You will have assume depreciation up to disposal date and calculate the gain/loss-see pgs 9-16/9-17.) 5. If DJ's instead uses the Units-of-Activity Method to record depreciation, what would be recorded as depreciation expense for 2018 if the equipment was run for 2,350 hours? (see Illustration 9A.3 on pg 9-29)