On January 1, 2015, ABC Sweets S.A., a chocolate and candy factory, acquires a machine for130,000. Delivery fees for the machine amount to 2,500. Payment is made in cash on the same day. The costs of installing the machine amount to 3,600. The machine is delivered and installed on the same day and it is immediately available for use. The machine is used to produce a new type of chocolate bar. So far, the company only produced different candies, but no chocolate products. The marketing department of the company invested in radio and TV advertising to promote the brand new chocolate bar. These advertising costs amount to 11,000 and are paid to Fun Advertisement S.A. on January 3, 2015. Additionally, ABC Sweets S.A. carries costs of reorganizing its business in the amount of 2,500. Payment is made of January 3, 2015. All payments are made in cash. The residual value of the machine is 4,500 and its estimated useful life is 3 years. At the end of its useful life, the machine is sold for its residual value. Determine the cost of the machine, the depreciable amount and the depreciation expense for the years 2015 to 2017. The financial year ends on 31 December.

1. Calculate the depreciation according to the straight-line method.

2. Show all accounting entries.