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On January 1, 2022, Switty Compary purchased the following two machines for use in its production process. Machine A: The cash price of this machine

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On January 1, 2022, Switty Compary purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $52,000. Related expenditures also paid in cash included: 5ale tax $3,100, shipping costs $200, insurance during shipping $120, installation and testing costs $50, and $150 of oll and lubricants to be used with the machinery during its first year of operations. Swifty estimates that the useful life of the machine is 5 years with a $5,500 salvage value remaining at the end of that time period. A5sume that the straight-line method of depreciation is used. Machine B: The recorded cost of this machine was $180,000. Swifty estimates that the uscful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period. Prepare the following for Machine A. (Round answers to 0 decimol ploces, eg. 5,125. List all debit entrles before credit entrles. Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for khe account tities and enter 0 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 Swifty should record for Machine B each year of its useful life under the following assumptions. (Round depreclation cost per unit to 2 decimal ploces, eg. 12.25. Round final answers to 0 decimal places, es. 2,125.) (1) Swifty uses the straight-line method of depreciation. (2) Swifty uses the declining-balance method. The rate used is twice the straight-line rate. (3) Swifty uses the units of-activity method and estimates that the useful life of the machine is 141,500 units. Actual usage is as follows: 2022,49,000 units: 2023,39,000 units; 2024,29,000 units; 2025,24,500 units. Which method used to calculate depreciation on Machine B reports the highest amount of depreciation expense in year 1 (2022)? The highest amount in year 4(2025) ? The highest total amount over the 4-year period

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