Machine A: The cash price of this machine was $49,500. Related expenditures also paid in cash included: sales tax $3,400, shipping costs $100, insurance during shipping $110, installation and testing costs $90, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Monty estimates that the useful life of the machine is 5 years with a $4,050 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 $180,000. Monty estimates that the useful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period.

On January 1,2022, Monty Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $49,500. Related expenditures also paid in cash included: sales tax $3,400, shipping costs $100, insurance during shipping $110, installation and testing costs $90, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Monty estimates that the useful life of the machine is 5 years with a $4,050 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 $180.000. Monty estimates that the useful life of the machine is 4 years with a $10,000 salvage value rernaining at the end of that time period. (3) Prepore the following for Machine A (Round answers to O decimol ploces ey 5,125 . List all debit entrios before credit entries Credit account utles are 1. The journal entry to record its purchase on January 1, 2022 . 2. The journal entry to record annual depreciation at December 31, 2022. Calculate the amount of depreciation expense that Monty should record for Machine B each year of its usefulife under the following assumptions. (Round depreclation cost per unit to 2 decinal places, e. 12.25. Rocind fincl answers to O decinal piacesi eg. 2.125.) (1) Monty uses the straight-line method of depreciation. (2) Monty uses the declining-balance method. The rate used is twice the straight -line rate. (3) Monty uses the units-of-activity method and estimates that the useful life of the machine is 128,750 units. Actual usage is as follows: 2022,46,000 units; 2023,36,000 units: 2024,26,000 units; 2025,20,750 units