On January 1, 2017, Sunland SA purchased the following two machines for use in its production process. Machine A: The cash price of this machine was R$44,000. Related expenditures included: sales tax R$3,500, shipping costs R$ 160, insurance during shipping R$ 60, installation and testing costs R$90, and R$ 140 of oil and lubricants to be used with the machinery during its first year of operations. Sunland estimates that the useful life of the machine is 5 years with a R$5,900 residual 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 R$249,600. Sunland estimates that the useful life of the machine is 4 years with a R$15,600 residual value remaining at the end of that time period. Machine B: Prepare the following for Machine A. (Round answers to 0 decimal places, e.g. 2,125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. The journal entry to record its purchase on January 1, 2017. 2. The journal entry to record annual depreciation at December 31, 2017. 1. The journal entry to record its purchase on January 1, 2017. 2. The journal entry to record annual depreciation at December 31, 2017. No. Account Titles and Explanation Debit Credit 1. Equipment 47950 Cash 47950 2. Depreciation Expense 8410 Accumulated Depreciati 8410 (1) (2) (3) Sunland uses the straight-line method of depreciation. Sunland uses the declining-balance method. The rate used is twice the straight-line rate. Sunland uses the units-of-activity method and estimates that the useful life of the machine is 178,180 units. Actual usage is as follows: 2017, 59,900 units; 2018, 48,900 units; 2019, 39,090 units; 2020, 30,290 units. 2017 2018 2019 2020 Straight-line method R$ 58500 R$ 58500 R$ 58500 R$ 58500 Declining-balance method R$ R$ R$ R$ Units-of-activity method R$ R$ R$ R$ LINK TO TEXT Which method used to calculate depreciation on Machine B reports the highest amount of depreciation expense : In Year 1 (2017) In Year 4 (2020) Over the 4-year period