For questions 15 and 16, use the following fact pattern: Della Corporation acquired machinery on January 1, 2018 for $200,000 with a salvage value of $20,000 and an estimated useful life of 5 years. The machinery can produce up to 400,000 units of output over its estimated useful life. 15. Assuming Della uses the declining-balance method, how much depreciation would be recorded in 2018? A. $72,000. B. $80,000. C. $36,000. D. $40,000. 16. Assuming Della uses the units-of-production method, how much depreciation would be recorded in 2018 if 120,000 units were produced? A. $180,000. B. $36,000 C. $60,000. D. $54,000. 17. Merton Company's payroll for the week of July 17 consisted of federal income taxes payable of $11,400, FICA taxes payable of $6,200, state income taxes payable of $2,320; this was on gross pay (salaries and wages expense) of $27,700. What is the amount of net pay (salaries and wages payable)? A. $27,700. B. $8,680. C. $10,100. D. $7,780. 3 18. On January 1, 2020, Compost Inc., issued $1,000,000, 6 percent bonds, at 97 percent of face value. The entry to record the bond issuance would include a: A. Debit to Cash $970,000. B. Credit to Discount on Bonds Payable, $30,000. C. Debit to Cash, $1,000,000. D. Credit to Bonds Payable, $970,000