PART 2

On Jannary 1,2017 Advantage Co. purchased a new machine for $4,$00. The machine has a useful life of 5 years, and a residual (salvage) value of sso0. It is estimated that the machine will produce 5,000 units over its lifetime. Advantage closes its books once a year, on 1231 . (a) If Advantage uses the straight-line method of depreciation, what journal entry would Advantage record on December 31, 2019 inrelation to depreciation of this machine? b) If Advantage uses the production method of depreciation what jourmal entry would Advantage record on December 31, 2018 in relation to depreciation of this machine, if the machine produces 1,500 units in 2018