On January 1,2014, Evers 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 include: sale tax 1,700, shipping cost $150,insurance during shipping $80, installation and testing cost $70, and $100 of oil and lubricant to be used with the machinery during its first year of operation.Evers estimates that the useful life of the machine is 5years with a $5000 salvage value remaining at the end of the of that time period.assume that the straight line method of depreciation is used.

Machine2- the record cost of this machine was 180,000.Evers 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. Journal entry to record purchase on January 1,2014,

journal entry to record annual depreciation at December 31,2014,

(b)calculate the amount of depreciation expense that Evers should record for machine B.

(1) Evers uses straight line method of depreciation

(2) Evers uses the declining balance method. The rate used twice the straight line rate.

(3) Evers uses the unit of activity method and estimates that the useful life of the machine is 125,000units. Actual usage is as follows: 2014,45,000 units; 2015,35000 units; 2016, 26,000 units; 2017,20,000 units