Group Work MANAMA INC. On July 1, 2020, Manama Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was BD24,000. Related expenditures included: shipping costs BD75, sales tax BD850, installation and testing costs BD35, insurance during shipping BD40, and BD50 of oil and lubricants to be used with the machinery during its first year of operations. Manama estimates that the useful life of the machine is 5 years with a BD2,500 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used. Machine B: The recorded cost of this machine was BD90,000. Manama estimates that the useful life of the machine is 4 years with a BD5,000 salvage value remaining at the end of that time period. Instructions (a) Contrast the straight-line method and the units-of-activity method as to (a) useful life, and (b) the pattern of periodic depreciation over useful life. (b) Prepare the following for Machine A. (1) The journal entry to record its purchase on July 1, 2020. (2) The journal entry to record annual depreciation at December 31, 2020 (c) Calculate the amount of depreciation expense that Manama should record for Machine B each year of its useful life under the following assumptions. (1) Manama uses the straight-line method of depreciation. (2) Manama uses the declining-balance method. The rate used is twice the straight-line rate. (3) Manama uses the units-of-activity method and estimates that the useful life of the machine is 62,000 units. Actual usage is as follows: 2020, 12,000 units: 2021, 18,000 units; 2022, 13,000 units; 2023, 10,000 units. (d) Which method used to calculate depreciation on Machine B reports the highest amount of depreciation expense in year 1 (1 July 2020)? The highest amount in year 4 (1 July 2024)? The highest total amount over the 4-year period