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P9-3B On January 1, 2017, B Company purchased two machines for use in its production process. lubricante to-be Machine B:The recorded cost of this machine

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P9-3B On January 1, 2017, B Company purchased two machines for use in its production process. lubricante to-be Machine B:The recorded cost of this machine was $120,000. Dill estimates that the useful life of the machine is 4 years with a $8,000 salvage value remaining at the end of that time period. Instructions (a) Prepare the following for machine A. assuming the straight-line method of depreciation is used (b) Calculate the amount of depreciation expense that should be recorded for Machine Beach year of its useful life under the following assumption (1) Company uses the straight-line method of depreciation. (2) Company uses the decining-balance method. The rate used is twice the straight-line rate. (3) Company uses the units-of-activity method and estimates the useful life is 25,000 units Actual usage: 2017- 5,500 units; 2018-7,000 units; 2019-8,000 units; 2020 4,500 units. (c) Which method used to calculate depreciation on Machine B reports the lowest amount of depreciation The lowest amount in year 4 (2018)? The lowest total amount over the 4- expense in year 1 (2017)? year period? b1 b2 Book Value atoe Year Beginning of Year D Annual Deprec Accumulated Depreciation DDB Rate Expense BELOW 92 b3 Year P9-3B On January 1, 2017, B Company purchased two machines for use in its production process. period Machine B The recorded cost of this machine was $120,000. Dill estimates that the useful life of the machine is 4 years with a $8,000 salvage value remaining at the end of that time period. Instructions al Prapare the following for machineA (1)The journal entry to racord its purchase on January 1-2017 (b) Calculate the amount of depreciation expense that should be recorded for Machine B eacb year of its useful life under the following assumption (1) Company uses the straight-ine method of depreciation. (2) Company useb the dedining-balance method. The rate used is twice the straight-line rate. (3) Company uses the units-of-activity method and estimates the useful fe is 25,000 units. Actual usage: 2017m 5,500 units; 2018m 7,000 units; 2019-8,000 units; 2020#4,500 units. (c) Which method used to calculate depreciation on Machine B reports the lowest amount of depreciation expense in year 1 (2017)? The lowest amount in year 4 (2018)? The lowest total amount over the 4 year period? b1 Value atpos Rate Annual Doprec Accumulated e Depreciation b2 Year Beginning of Year DDB Rate 2017 2018 2019 2020 Expense BELOW 9-2 b3 Year

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