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Problem 10-03A. on January 1, 2020, Pina Colada Company purchased the following two machines for use in its production process Machine A The cash price
Problem 10-03A. on January 1, 2020, Pina Colada Company purchased the following two machines for use in its production process Machine A The cash price of this machine was 543,500 Related expenditures included soles tax $3,550, shipping costs $150, insurance during stepping $50, installation and testing ensts 100, and 200 oil and lubricants to be used with the machinery during its first year of operations. Pina Colada estrates that the useful le of the machine is yrs with 15, 216 salvagevole remang the end of that time period. Assume that the straight line method of depreciation is used Machine B. The recorded cost of the machine was $100,000, Pina Colada est that the settle of the machines 4 year with $10,000 vege value remaining at the end of that pened Prepare the following for Machine A Round answer to decimales. Cocotites are automatically dested when it is entiret. Du not indoor man entry is required, select "No Entry for the account inter for them) 1. The Journal entry to record to purchase on January 1, 2020 3. The journal entry to record annualdeorection at December 31, 2020, Credit Me M. Tities and Explanation 1 W LINE O ACCOUNT LINE TORRE CALDARON FULL Calculate the amount of depreciation expense that Pina Colada should record for Machine Beach year of its useful life under the following assumptions and depicost prima place, n. 12.25. Round final answers to decimal places, c.2,125.) (1) Pina Colada uses the straight line method of depreciation (2) Pina Colada uses the declining balance method. The rate used is twice the straight lineste (3) Pina Colada uses the units-of-activity method and estimates that the useful life of the machine s 136.000 units. Actual usage is as follows: 2020, S2,000 units 2021, 38,000, 2002, 20.000; 2023, 19,000 units Depreciation Expense 2020 2021 2022 2023 Straight-line method 42500 42500 42500 s 42500 Dodining balance method 5000 42500 10625 Units of activity method $ 65000 48750 23750 32500 SIRIW LIST OF ACCOUNTS LINK 10 TERE Which method used to calculate depreciation on Machine reports the highest amount of depreciation expert in year 1 02020) Declining balance method The highest amount in year (2023) Which method used to calculate depreciation on Machine B reports the highest amount of depreciation expense in year 1 (2020)? Declining-balance method The highest amount in year 4 (2023)? The highest total amount over the 4-year period? Click if you would like to show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT
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