Problem 10 3A On January 1, 2017, Evers Company purchased the following two machines for use in its production process Machine A The cash price of this machine was $37,500 Related expenditures included sales tax $2,000, shipping costs $150, insurance during shipping $110, installation and testing costs $120, and $100 of oil and lubricants to be used with the machinery during its first year of operations Evers estimates that the useful life of the machine is 5 years with a $4,500 salvage 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 $180,000 Evers 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 Which method used to calculate depreciation on Machine B reports the highest amount of depreciation expense in year 1 (2017) The highest amount in year 4 (2020) 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 VIDEO SIMILAR PROBLEM By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor

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Problem 10-3A On January 1, 2017, Evers Company purchased the following two machines for use in its production process. Machine A: The cash price of

Problem 10-3A

On January 1, 2017, Evers Company purchased the following two machines for use in its production process.

Machine A:		The cash price of this machine was $37,500. Related expenditures included: sales tax $2,000, shipping costs $150, insurance during shipping $110, installation and testing costs $120, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Evers estimates that the useful life of the machine is 5 years with a $4,500 salvage 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 $180,000. Evers 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.

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Which method used to calculate depreciation on Machine B reports the highest amount of depreciation expense in year 1 (2017)? The highest amount in year 4 (2020)? 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 VIDEO: SIMILAR PROBLEM By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor