On January 1, 2020, Bramble Company purchased the following two machines for use in its production process, Machine A The cash price of this machine was $ 37.500. Related expenditures included: sales tax $ 3,350, shipping costs $ 150, insurance during shipping $ 60, installation and testing costs $50, and $ 150 of oil and lubricants to be used with the machinery during its first year of operations. Bramble estimates that the useful life of the machine is 5 years with a $ 4,150 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. Bramble estimates that the useful life of the machine is 4 years with a $9,800 salvage value remaining at the end of that time period. Machine B: 1 The journal entry to record its purchase on January 1, 2020. 2 The journal entry to record annual depreciation at December 31, 2020. No. Account Titles and Explanation Debit Credit 1. Equipment 41,260 Cash 41,260 2. Depreciation Expense 7,422 Accumulated Depreciation Equipment 7.422