Initial cost $260,000

Estimated residual value $12,000

Expected useful life 5 years

Estimated hours of useful life 38,000 hours

Depreciation method Straight-line

Hours operated during 20x1 2,800 hours

Hours operated during 20x2 2,600 hours

1). Jasmine Company would report $_________ of depreciation expense in its December 31, 20x1 income statement and $ ______of depreciation expense in its December 31, 20x2 income statement.

2). Prepare the journal entry that Jasmine would make to record depreciation on December 31, 20x1:

3). Prepare the journal entry that Jasmine would make to record depreciation on December 31, 20x2: