Problem 10 03A ac On January 1, 2020, Novak Company purchased the following two machines for use in its production precess. The cash price of this machine was $43,000, Related expenditures induded: sales tax $1.700, shoping costs $200, insurance during shippng $100, nstalation and testing costs $70, and $100 of od and lubricants to be used with the machnery during its first year of operations. Novak estimates that the useful lide of the machine is 5 years with a $4,050 salvage value remaining at the end of that time period. Assume that the straighe ine method of depreciation is used. The recorded cost of this machine was $180,000. Novak estimates that the useful life of the machine is 4 years with a $10,050 salvage value remaining at the end of that time penod. Machine A: Machine B: Prepare the following for Machine A. (Round answers to o decimal places, eg. 5,125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the accont titles and enter O for the amounts.) 1. The journal entry to record as purchase on lanuary 1, 2020. 2. The journal entry to recerd anneal depreciation at December 31, 2020. Credit No. Account Tnles and Explanation Debit 1. 2. SHOW LIST OoF ACCOUNES Calculate the amount of depreciation expense that Novak should record for Machine B each year of es useful Me under the fellowing assumptions (hoand depreciation cost per unit to 2 decimal places, eg. 12.25. Reund final answers to o decimal places, eg. 2,12s.) (1) Novak uses the straight line method of deprecistion. (2) Novak uses the declning balance method, The rate used is twice the straght line rate Calculate the amount of depreciation expense that Novak should record for Machine Beach year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answwers to 0 decimal places, e.g. 2,125.) Novak uses the straight-ine method of deprecistion (1) Novak uses the declaning-balance method. The rate used is twice the straight-line rate. (3) Novak uses the units-of-activity method and estimates that the useful Me of the machine is 103,000 units. Actual usage is as follows: 2020, 45,000 units, 2021, 31,000 units; 2022, 17,000 units 2023, 10,000 units. (2) Depreciation Expense 2021 2023 2022 2020 Straighe-ine method Decining balance method Units of activity method %24 sow LISE oF ACCOUNTS UNK TO TEXT Which method used to calculate depreciation on Machine B reports the highest amount of depreciation expense in year 1 (2020)? The highest amount in year 4 (2023)? The highest total amount over the 4-year period