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Problem 9-3A (Part Level Submission) On January 1, 2015, Evers Company purchased the following two machines for use in its production process. Machine A: The

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Problem 9-3A (Part Level Submission) On January 1, 2015, Evers Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $50,400. Related expenditures included: sales tax $2,700, shipping costs $130, insurance during shipping $60, installation and testing costs $60, and $170 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 $4,700 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 $193,600. Evers estimates that the useful life of the machine is 4 years with a $11,000 salvage value remaining at the end of that time period. Machine B: Your answer is correct. Prepare the following for Machine A. (Round answers to O decimal places, e.g. 2,125. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. The journal entry to record its purchase on January 1, 2015 The journal entry to record annual depreciation at December 31, 2015 2. No. Account Titles and Explanation Debit Credit 53350 ui Cash 2. reciation Expense at Calculate the amount of depreciation expense that Evers should record for Machine B each year of its useful life under the following assumptions. (Round final (1) Evers uses the straight-line method of depreciation. (2) Evers uses the declining-balance method. The rate used is twice the straight-line rate. (3) Evers uses the units-of-activity method and estimates that the useful life of the machine is 113,200 units. Actual usage is as follows: 2015, 45,700 units; 2016, 31,700 units; 2017, 20,700 units; 2018, 15,100 units. 2015 2017 2018 2016 Straight-line method Declining-balance method Units-of-activity method

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