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Please answer a, and also to progress!! 19.3 (40 2) on January 1, 2020, Pele Industries purchased the following two machines for use in its
Please answer a, and also to progress!!
19.3 (40 2) on January 1, 2020, Pele Industries purchased the following two machines for use in its production process. Compute depreciation under different methods Machine A: The cash price of this machine was R$35,000. Related expenditures included: sales tax R$2,200, shipping costs RS150, insurance during shipping R$80, installation and test- ing costs R$ 70, and RS100 of oil and lubricants to be used with the machinery during its first year of operations. Pele estimates that the useful life of the machine is 5 years with a R$5,000 residual value remaining at the end of that time period. Assume that the straight-line method of depreciation is used. Machine B: The recorded cost of this machine was R$80,000. Pele estimates that the useful life of the machine is 4 years with a R$5,000 residual value remaining at the end of that time period. Instructions 2. Prepare the following for Machine A. 1. The journal entry to record its purchase on January 1, 2020, 2. The journal entry to record annual depreciation at December 31, 2020 Step by Step Solution
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