E9-6 Computing and Recording Straight-Line Depreciation Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $22,000. The estimated useful life was five years and the residual value was $2,000. Required: 1. Complete a depreciation schedule with the following headings. Assume the straight-line method is used and round answers to the nearest dollar. Income Statement Balance Sheet Year Computation Depreciation Expense Accumulated Cost Depreciation Book Value At acquisition 1 2. Prepare the journal entry to record Year 2 depreciation. LO 9-3 CHAPTER 9 Long-Lived Tangible and Intangible Assets LO 9-3 LO 9-3 LO 9-3 Sonic Corporation E9-7 Computing and Recording Units-of-Production Depreciation Refer to the information in E9-6. Further assume the estimated productive life of the machine is 10,000 units. Expected annual production was year 1,2,000 units; year 2, 3,000 units; year 3, 2,000 units; year 4, 2,000 units; and year 5, 1,000 units. Complete requirements 1 and 2 assuming the units-of-production method is used. E9-8 Computing and Recording Double-Declining-Balance Depreciation Refer to the information in E9-6. Complete requirements 1 and 2 assuming the double-declining- balance method is used. E9-9 Computing Depreciation under Alternative Methods Sonic Corporation purchased and installed electronic payment equipment at its drive-in restau- rants in San Marcos, TX, at a cost of $27,000. The equipment has an estimated residual value of $1,500. The equipment is expected to process 255,000 payments over its three-year useful life. Per year, expected payment transactions are 61,200, year 1; 140,250, year 2; and 53,550, year 3. Required: Complete a depreciation schedule for each of the alternative methods. 1. Straight-line. 2. Units-of-production. 3. Double-declining-balance. Year Computation Income Statement Depreciation Expense Balance Sheet Cost Accumulated Depreciation Book Value At acquisition