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Please help with wrong answers On January 1, 2022, Sheffield Company purchased the following two machines for use in its production process. Machine A: The
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On January 1, 2022, Sheffield Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $41,000. Related expenditures also paid in cash included: sales tax $1,650, shipping costs $200, insurance during shipping $50, installation and testing costs $90, and $200 of oil and lubricants to be used with the machinery during its first year of operations. Sheffield estimates that the useful life of the machine is 5 years with a $4,400 salvage value remaining at the end of that time period. Assume that the straightline method of depreciation is used. Machine B: The recorded cost of this machine was $180,000. Sheffield estimates that the useful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period. Prepare the following for Machine A. (Round answers to 0 decimal places, e.g. 5,125. List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 1. The journal entry to record its purchase on January 1,2022. 2. The journal entry to record annual depreciation at December 31, 2022. Calculate the amount of depreciation expense that Sheffield should record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answers to 0 decimal places, e.g. 2,125.) (1) Sheffield uses the straight-line method of depreciation. (2) Sheffield uses the declining-balance method. The rate used is twice the straight-line rate. (3) Sheffield uses the units-of-activity method and estimates that the useful life of the machine is 141,875 units. Actual usage is as follows: 2022, 50,000 units; 2023, 39,000 units; 2024,28,000 units; 2025, 24,875 units. Depreciation Expense 2022 2023 2024 Straight- line method $42500 $42500 $4 Declining- balance method $90000 $5000 $22500 Units-of- activity method $60000 $ 46800$ 33600 Depreciation Expense 2023 2024 2025 $ 42500 $ $ 42500 $45000 $22500 $11250 $ 46800 $3600 \( \$ \longdiv { 2 9 8 5 0 } \) Which method used to calculate depreciation on Machine B reports the highest amount of depreciation expense in year 1 (2022)? The highest amount in year 4(2025) ? The highest total amount over the 4-year period
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