Maserati Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $150,000. The company estimated that the machine would have a salvage value of $24,000 at the end of its service life. Its life is estimated at 4 years and its working hours are estimated at 21,000 hours.

a. For depreciation entries entered only once a year, what would be the adjusting entry required for December 31, 2020 using the straight-line method?

b. For depreciation entries entered only once a year, what will be the adjusting entry required for December 31, 2020 using the activity method assuming that the machine usage was 800 hours?