On January 1, 2022, Sarasota Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $37,500. Related expenditures also pold in cash included: sales tax $3,600. shipping costs $100, insurance during shipping $50, installation and testing costs $120, and $150 of oil and lubricants to be used with the machinery during its first year of operations. Sarasota estimates that the useful ife of the machine is 5 years with a $5.950 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. Sarasota estimates that the useful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period. (a) Prepare the following for Machine A. (Round answers to 0 decimal places, e.g. 5,125 , List all debit entries before credif entries. Credit account tifles are automatically indented when amount is entered. Do not indent manualiy. if no entry is required, seiect "No Entry" for the account tieles and enter 0 for the amounts.) Prenare the following for Machine A. (Round answers to 0 decimol places, e.g. 5,125 . List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount 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 eapense that Sarasota should record for Machine B each year of ats usefuf fife under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.3. 12.25. Round final denwerv to 0 decimat places, e. \$i. 2.125] (1) 5arasotauses the straight-line method af depreciation, (2) Sarasota uses the declining-balance method. The rate used is twice the straight-line rate. (3) Sarasota uses the units-of-activity method and estimates that the useful life of the machine is 106,375 units. Actual usage is as follows: 2022,42,000 units; 2023,30,500 units: 2024,19000 units: 2025,14,875 units. Calculate the amount of depreciation experse that Sarasota thoukd record for Machine B each year of its useful nife under the following assamptions, \{Round depreciation cost per unit to 2 decimat places, e.g. 12.25. Round final answers to 0 decimal places, e.s. 2,125) (1) Sarasotauses thestraight-line method of depreciation. (2) Saratota uses the declining balance method. The rate used is twice the straight-line rate. (3) Sarasota uses the units-of-activity method and estimates that the useful life of the machine is 106,375 unite. Actual 4agetis as follows: 2022,42,000 units, 2023,30,500 units, 2024,19,000 units: 2025,14,975 units. Which method used to calculate depreciation on Machine B reports the hishest amount of depreciatian erpense in year 1 i 20221 ? The highest amount in vear 4[2025] ? The highet total amount over the 4-year period? eTextbook and Media List of Accounts Attempts: 0 of 2 used
