On July 1st, 2018, IMA Big Corp purchased a machine costing $400,000 by putting 20% down and borrowing the remainder from the bank. The machine has an estimated useful life of 4 years, and an estimated salvage value of 10%. IMA uses straight-line depreciation and is a calendar year-end (12/31st)

1) Account for the purchase on 7/1/18 (using the balance sheet equation)

2) At year-end 2017, calculate and account for depreciation expense (using balance sheet equation)

3) At year end 2018, calculate and account for depreciation expense (using balance sheet equation)

4) At 12/31/17, show the Net Book Value

5) At 12/31/18, show the Net Book Value