On January 1, 2020, The Fio Corporation purchased a machine for $800,000.The corporation estimated a 5-year useful life (or 60,000 units of useful life) and $40,000 residual/salvage value.

45000 Units were produced in 2020.

6 points:

Complete the following table using the indicated depreciation method and year for each row of the table.

Method

Depreciation expense

Accumulated depreciation

Book value

Straight-line for 2020

Double-declining balance 2020

Double-declining balance 2021

Units-of-production 2020

4 points:

What would the journal entry be if the straight-line method was used and the machine was sold on 12/31/2020 for $700,000?