On January 1, 2022, Bramble Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $39,000. Related expenditures also paid in cash included: sales tax $1,800, shipping costs $150, insurance during shipping $70, installation and testing costs $70, and $200 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 $4,350 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 $16,720 salvage value remaining at the end of that time period. Machine B: (a) Your answer is correct. Prepare the following for Machine A. (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 Ofor the amounts.) 1. The journal entry to record its purchase on January 1, 2022. The journal entry to record annual depreciation at December 31, 2022. 2. Debit Credit No. Account Titles and Explanation 1. Equipment 41090 Cash 41090 2. Depreciation Expense 7348 Accumulated Depreciation-Equipment 7348 Calculate the amount of depreciation expense that Bramble should record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answers to 0 decimal places, e.g. 2,125.) (1) (2) (3) Bramble uses the straight-line method of depreciation. Bramble uses the declining-balance method. The rate used is twice the straight-line rate. Bramble uses the units-of-activity method and estimates that the useful life of the machine is 157,000 units. Actual usage is as follows: 2022, 58,000 units; 2023, 44,000 units; 2024, 30,000 units; and 2025, 25,000 units. Depreciation Expense 2022 2023 2024 $ $ $ $ $ Straight- line method Declining- balance method Units-of- activity method $ $ $ $ $ $ $ $ Calculate the amount of depreciation expense that Bramble should record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answers to O decimal places, e.g. 2,125.) (1) (2) (3) Bramble uses the straight-line method of depreciation. Bramble uses the declining-balance method. The rate used is twice the straight-line rate. Bramble uses the units-of-activity method and estimates that the useful life of the machine is 157,000 units. Actual usage is as follows: 2022, 58,000 units; 2023, 44,000 units; 2024, 30,000 units; and 2025, 25,000 units. Depreciation Expense 2022 2023 2024 2025 $ $ $ $ $ $ $ $ $
