On January 1, 2020, Cheyenne SA purchased the following two machines for use in its production process.

Machine A:		The cash price of this machine was R$45,500. Related expenditures included: sales tax R$3,500, shipping costs R$200, insurance during shipping R$80, installation and testing costs R$100, and R$200 of oil and lubricants to be used with the machinery during its first year of operations. Cheyenne estimates that the useful life of the machine is 5 years with a R$4,600 residual value remaining at the end of that time period. Assume that the straight-line method of depreciation is used.
Machine B:		The recorded cost of this machine was R$92,800. Cheyenne estimates that the useful life of the machine is 4 years with a R$5,000 residual value remaining at the end of that time period.

Prepare the following for Machine A. (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, 2020.
2.		The journal entry to record annual depreciation at December 31, 2020.

Calculate the amount of depreciation expense that Cheyenne should record for Machine B each year of its useful life under the following assumptions. (Round answers to 0 decimal places, e.g. 2,125. Round cost per unit to 2 decimal place, e.g. 1.25.)

(1)		Cheyenne uses the straight-line method of depreciation.
(2)		Cheyenne uses the declining-balance method. The rate used is twice the straight-line rate.
(3)		Cheyenne uses the units-of-activity method and estimates that the useful life of the machine is 125,000 units. Actual usage is as follows: 2020, 46,500 units; 2021, 35,500units; 2022, 28,000 units; 2023, 15,000 units.

Which method used to calculate depreciation on Machine B reports the highest amount of depreciation expense :

In Year 1 (2020)
In Year 4 (2023)
Over the 4-year period