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

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On January 1,2022, Novak Compary purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $53,500. Related expenditures also paid in cash included: sales tax $3,650, shipping costs $200. Insurance during shipoing $100, installation and testing costs $60, and $150 of oll and lubricants to be used with the machinery during its first year of operations. Novak estimates that the usefut tife of the machine is 5 years with a $4,400 salvage value remaining at the end of that time perlod. Assume that the straight-line method of depreciation is used. Machine 8: The recorded cost of this mochine was $180,000. Novak estimates that the usefullife of the machine is 4 vears with a $9.500 salvage value remaining at the end of that time period. Prepare the folliowing for Machine A (Credit account titles are outomatically indented when amount is entered. Do not indent manualik. If no entry is required, select "No Entry" for the occount tilles and enter Ofor the amounts:) 1. The journal entry to record its purchase on January 1.2022. 2. The fournal entry to record annual depreciation at December 31, 2022. Calculate the amount of depreciation expense that Novak should record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, eg. 12.25. Round final answers to 0 decimal ploces, eg. 2,125.) (1) Novak uses the straight-line method of depreciation. (2) Novak uses the declining-balance method The rate used is twice the straight -line rate. (3) Novak uses the units-of-activity method and estimates that the useful life of the machine is 155,000 units. Actual usage is as follows: 2022,52,500 units; 2023, 42,500 units; 2024, 32,500 units; and 2025, 27,500 units. Which method used to calculate depreciation on Machine B reports the hishest ampont of depreciaton cepense in year 1 (2022)? The highest amount in vear 4(2025)? the hidest total amount over the 4 -vear period

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