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Im not totally sure if my answers are right so if you could double check those as well as figuring out the last part of
Im not totally sure if my answers are right so if you could double check those as well as figuring out the last part of this problem it would be appreciated!
Problem 10-03A a-c On January 1, 2020, Sarasota Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $53,500. Related expenditures included: sales tax $3,650, shipping costs $200, insurance during shipping $100, installation and testing costs $60, and $150 of oil and lubricants to be used with the machinery during its first year of operations. Sarasota estimates that the useful life of the machine is 5 years with a $4,400 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used. The recorded cost of this machine was $180,000. Sarasota estimates that the useful life of the machine is 4 years with a $10,200 salvage value remaining at the end of that time period. Machine B: Prepare the following for Machine A. (Round answers to 0 decimal places, e.g. 5,125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. 1. The journal entry to record its purchase on January 1, 2020. 2. The journal entry to record annual depreciation at December 31, 2020. No. Account Titles and Explanation Debit Credit 1. Equipment 57660 Cash 57660 2. Depreciation Expense 10652 Accumulated Depreciation Equipment 10652 Calculate the amount of depreciation expense that Sarasota should record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answers to 0 decimal places, e.g. 2,125.) (1) (2) (3) Sarasota uses the straight-line method of depreciation. Sarasota uses the declining-balance method. The rate used is twice the straight-line rate. Sarasota uses the units-of-activity method and estimates that the useful life of the machine is 135,840 units. Actual usage is as follows: 2020, 47,500 units; 2021, 37,500 units; 2022, 27,500 units; 2023, 23,340 units. Depreciation Expense 2020 2021 2022 2023 Straight-line method 42450 42450 42450 42450 A Declining-balance method Units-of-activity method AStep by Step Solution
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