On January 1, 2022, Monty Company purchased the following two machines for use in its production process. Machine A: Machine B: 1. 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 0 for the amounts.) 2. The cash price of this machine was $48,000. Related expenditures also paid in cash included: sales tax $2,600, shipping costs $200, insurance during shipping $50, installation and testing costs $60, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Monty estimates that the useful life of the machine is 5 years with a $5,050 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. Monty estimates that the useful life of the machine is 4 years with a $19,500 salvage value remaining at the end of that time period. 1. The journal entry to record its purchase on January 1, 2022. The journal entry to record annual depreciation at December 31, 2022. No. Account Titles and Explanation Debit Credit

On January 1, 2022, Monty Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $48,000. Related expenditures also paid in cash included: sales tax $2,600, shipping costs $200, insurance during shipping $50, installation and testing costs $60, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Monty estimates that the useful life of the machine is 5 years with a $5,050 salvage 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 $180,000. Monty estimates that the useful life of the machine is 4 years with a $19,500 salvage value remaining at the end of that time period. Prepare the following for Machine A. (Credit account titles are outomatically 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 1,2022. 2. The journal entry to record annual depreciation at December 31,2022. Calculate the amount of depreciation expense that Monty 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) Monty uses the straight-line method of depreciation. (2) Monty uses the declining-balance method, The rate used is twice the straight-line rate. (3) Monty uses the units-of-activity method and estimates that the useful life of the machine is 107,000 units. Actual usage is as follows: 2022,45,500 units; 2023,31,500 units; 2024,17,500 units; and 2025,12,500 units. The highest amount in year 4(2025) ? The highest total amount over the 4 -year period