Problem 11-17 Consider the following independent situations. Situation 1: Marigold Corporation purchased electrical equipment at a cost of $11,900 on June 2, 2014. From 2014 through 2017, the equipment was depreciated on a straight-line basis, under the assumption that it would have a 10-year useful life and a $2,300 residual value. After more experience and before recording 2018's depreciation, Marigold revised its estimate of the machine's useful life downward from a total of 10 years to 8 years, and revised the estimated residual value to $1,900. On April 29, 2019, after recording part of a year's depreciation for 2019, the company traded in the equipment on a newer model, and received a $3,800 trade-in allowance, even though the equipment's fair value was only $2,700. The new asset had a list price of $14,700 and the supplier accepted $10,800 cash for the balance. The new equipment was depreciated on a straight-line basis, assuming a seven-year useful life and a $1,200 residual value. Determine the amount of depreciation expense reported by Marigold for each fiscal year for the years ending December 31, 2014, to December 31, 2019. (Round depreciation expense per month to 0 decimal places, e.g. 15.and Round answers to 0 decimal places, e.g. 5,275.) Year Depreciation expense 2014 $ 2015 $ 2016 $ 2017 $ 2018 $ 2019 $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Situation 2: Bonita Limited acquired a truck to deliver and install its specialized products at the customer's site. The vehicle's list price was $43,000, but customization added another $10,000 in costs. Bonita took delivery of the truck on September 30, 2017, with a down payment of $5,000, signing a four-year, 8% note for the remainder, payable in equal payments of $13,916 beginning September 30, 2018. Bonita expected the truck to be usable for 500 deliveries and installations. After that, the product's technology would have changed and made the vehicle obsolete. In late July 2020, the truck was destroyed when a concrete garage collapsed. Bonita used the truck for 45 deliveries in 2017, 125 in 2018, 134 in 2019, and 79 in 2020. The company received a cheque for $11,500 from the insurance company and paid what remained on the note. Click here to view the factor table. Prepare all entries that are needed to record the events and activities related to the truck, including the depreciation expense on the truck each year. Assume that Bonita uses an activity approach to depreciate the truck, and bases it on deliveries. (Credit account titles are automatically indented when the 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. Round factor values to 5 decimal places, e.g. 5.27515 and final answers to 0 decimal places, e.g. 5,275. Round depreciation rate per delivery to 0 decimal places, e.g. 15.) 2017: Debit Credit Date Account Titles and Explanation September 30 December 31 (To record interest expense) December 31 (To record depreciation expense) 2018: Date Account Titles and Explanation Debit Credit September 30 December 31 (To record interest expense) December 31 (To record depreciation expense) 2019: Date Account Titles and Explanation Debit Credit September 30 December 31 (To record interest expense) December 31 to record deseti cu 2020: Date Account Titles and Explanation Debit Credit July 31 (To record depreciation expense) July 31 (To record disposal of truck) July 31 (To record interest expense on note payable) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Situation 3: A group of new machines was purchased on February 17, 2018, under a royalty agreement with the following terms: The purchaser, Sunland Corp., is to pay a royalty of $1 to the machinery supplier for each unit of product that is produced by the machines each year. The machines are expected to produce 192,000 units over their useful lives. The machines' invoice price was $72,000, freight costs were $1,900, unloading charges were $1,400, and royalty payments for 2018 were $12,500. Sunland uses the unit of production method to depreciate its machinery. Prepare journal entries to record the purchase of the new machines, the related depreciation for 2018, and the royalty payment. (Credit account titles are automatically indented when the 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. Round depreciation rate to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit February 17 December 31 (To record the payment of royalty expense) December 31 (To record depreciation expense) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Situation 4: On March 31, 2014, Splish Brothers Corporation purchased a new piece of manufacturing equipment for a cost of $310,000. At that time, the estimated useful life of the equipment was five years, with a residual value of $62,000. On August 1, 2017, due to increased competition causing a decreased selling price for its product, Splish Brothers decided to discontinue manufacturing the product. By December 31, 2017, there was a formal plan in place to sell the equipment, and the equipment qualified for classification as held for sale. At December 31, 2017, the equipment's fair value less costs to sell was $50,000. Due to matters beyond Splish Brothers's control, a potential sale of the equipment fell through in 2013, although consumer confidence in Splish Brothers's product increased significantly because of reported defects in their competitors' products. The equipment remained classified as held for sale at December 31, 2018, when the equipment's fair value less costs to sell increased to $139,000. Splish Brothers uses the straight-line method to depreciate its equipment. Prepare all journal entries required for the years ending December 31, 2017, and December 31, 2018. (Credit account titles are automatically indented when the 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. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit December 31, 2017 (To record depreciation on equipment) December 31, 2017 (To record impairment of equipment) December 31, 2018 (To record recovery from impairment) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT