Problem 10-03A a-C On January 1, 2020, Swifty Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $53,500. Related expenditures included: sales tax $2,600, shipping costs $100, insurance during shipping $120, installation and testing costs $80, and $150 of oil and lubricants to be used with the machinery during its first year of operations. Swifty estimates that the useful life of the machine is 5 years with a $4,200 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used. The recorded cost of this machine was $180,000. Swifty estimates that the useful life of the machine is 4 years with a $10,200 salvage value remaining at the end of that time period. Machine B: Prepare the following for Machine A. (Round answers to 0 decimal places, e.g. 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 account titles and enter O for the amounts.) 1. The journal entry to record its purchase on January 1, 2020. 2. The journal entry to record annual depreciation at December 31, 2020. No. Account Titles and Explanation Debit Credit 1. Equipment Cash 2. Depreciation Expense Accumulated Depreciation Equipment Calculate the amount of depreciation expense that Swifty 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) Swifty uses the straight-line method of depreciation. (2) Swifty uses the declining-balance method. The rate used is twice the straight-line rate. (3) Swifty uses the units-of-activity method and estimates that the useful life of the machine is 141,500 units. Actual usage is as follows: 2020, 50,000 units; 2021, 40,150 units; 2022, 30,300 units; 2023, 21,050 units. Depreciation Expense 2021 2022 2020 2023 Straight-line method Declining-balance method $ $ $ $ Units-of-activity method $ $ $ $ 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