Misha's Crystal Ball Corporation purchased two machines at the beginning of the year. They need to calculate the annual depreciation based on the following information:

Machine No.CostSalvage ValuePurchase DateEstimated LifeDepreciation Method

1$54,000$6,0001/1/213 yearsStraight-line

2$96,000$9,6001/1/218 yearsDouble-declining balance

Required:

Calculate the annual depreciation expense for each machine in Year 1 and Year 2 for the year ended December 31, 2021. Please show your work. (5 points extra credit - create the journal entries for Year 1 for Machines 1 & 2)

Machine 1: Year 1______________________ Year 2 _______________________

Machine 2: Year 1 ______________________ Year 2 _______________________