On January 1, 2020, Whispering Winds Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $37,000. Related.expenditures included: sales tax $1,500, shipping costs $100, insurance during shipping $50, installation and testing costs $50, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Whispering Winds estimates that the useful life of the machine is 5 years with a $4,000 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. Whispering Winds estimates that the useful life of the machine is 4 years with a $10,250 salvage value remaining at the end of that time period. Machine B: (a) Your answer is partially correct. Try again. Prepare the following for Machine A. (Round answers to 0 decimal places, e.g. 5,125. 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, 2020. 2. The journal entry to record annual depreciation at December 31, 2020. No. Account Titles and Explanation Debit Credit 1. Accumulated Depreciation Equipment 38800 | Equipment 38800 Depletion Expense 3700 Accumulated Depreciation-Equipment 3700