On January 1, 2017, Evers Company purchased the following two machines for use in its production process Machine A: The cash price o this machine was $50,000. Related expenditures included: sales tax s3 700, shipping costs S100 $100 of oil and lubricants to be used with the machinery during its first year of operations. Evers estimates that the useful life of the machine is 5 years with a $5,050 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used The recorded cost of this machine was $180,000. Evers estimates that the useful life of the machine is 4 years with a $10,100 salvage value remaining at the end of that time period nsurance during shipping 60. installation and testing costs so and Machine B: Prepare the following for Machine A. (Round answers to 0 decimal places, e.g. 2,125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 1. The journal entry to record its purchase on January 1, 2017, 2. The journal entry to record annual depreciation at December 31, 2017 No. Account Titles and Explanation 1. Debit Cali 2. Calculate the amount of depreciation expense that Evers should record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answers to 0 decimal places, e.g. 2,125.) (1) Evers uses the straight-line method of depreciation. (2) Evers uses the declining-balance method. The rate used is twice the straight-line rate. (3) Evers uses the units-of-activity method and estimates that the useful life of the machine is 115,650 units. Actual usage is as follows: 2017, 43,000 units; 2018, 33,000 units; 2019, 23,000 units; 2020, 16,650 units. Depreciation Expense 2017 198 2019 2020 Straight-line method Declining-balance method Units-of-activity method Which method used to calculate depreciation on Machine B reports the highest amount of depreciation expense in year 1 (2017)? The highest amount in year 4 (2020)? The highest total amount over the 4-year period