Question 1 (4 points) Saved On January 1, 2021 Advantage Co. purchased a new machine for $4,500. The machine has a useful life of 5 years, and a residual value of $500. It is estimated that the machine will produce 4,000 units over its lifetime (1,500 units in 2021; 1,000 units in 2022; 500 units each remaining year). Advantage closes its books once a year, on December 31st. If Advantage uses the Straight-Line Method of depreciation, what journal entry would Advantage record on December 31, 2021 in relation to depreciation of this machine? Dr. Depreciation Expense $800 Cr. Accumulated Depreciation $800 Dr. Depreciation Expense $800 Cr. Machine (PPE) $800 Dr. Depreciation Expense $1,000 Cr. Accumulated Depreciation $1,000 Dr. Accumulated Depreciation $800 Cr. Depreciation Expense $800 Question 2 (4 points) On January 1, 2021 Advantage Co. purchased a new machine for $4,500. The machine has a useful life of 5 years, and a residual value of $500. It is estimated that the machine will produce 4,000 units over its lifetime (1,500 units in 2021; 1,000 units in 2022; 500 units each remaining year). Advantage closes its books once a year, on December 31st. If Advantage uses the Straight-Line Method of depreciation, what journal entry would Advantage record on December 31, 2022 in relation to depreciation of this machine? Dr. Depreciation Expense $800 Cr. Machine (PPE) $800 O Dr. Depreciation Expense $800 Cr. Accumulated Depreciation $800 O Dr. Depreciation Expense $1,000 Cr. Accumulated Depreciation $1,000 O Dr. Accumulated Depreciation $800 Cr. Depreciation Expense $800 Question 3 (4 points) On January 1, 2021 Advantage Co. purchased a new machine for $4,500. The machine has a useful life of 5 years, and a residual value of $500. It is estimated that the machine will produce 4,000 units over its lifetime (1,500 units in 2021; 1,000 units in 2022; 500 units each remaining year). Advantage closes its books once a year, on December 31st. If Advantage uses the Straight-Line Method of depreciation, how much depreciation expense will Advantage recognize on its 2021 Income Statement in relation to this machine? $1,000 $0 $800 $1,600 Question 4 (4 points) On January 1, 2021 Advantage Co. purchased a new machine for $4,500. The machine has a useful life of 5 years, and a residual value of $500. It is estimated that the machine will produce 4,000 units over its lifetime (1,500 units in 2021; 1,000 units in 2022; 500 units each remaining year). Advantage closes its books once a year, on December 31st. If Advantage uses the Straight-Line Method of depreciation, how much depreciation expense will Advantage recognize on its 2022 Income Statement in relation to this machine? $1,000 $0 $800 O $1,600 Question 5 (4 points) On January 1, 2021 Advantage Co. purchased a new machine for $4,500. The machine has a useful life of 5 years, and a residual value of $500. It is estimated that the machine will produce 4,000 units over its lifetime (1,500 units in 2021; 1,000 units in 2022; 500 units each remaining year). Advantage closes its books once a year, on December 31st. If Advantage uses the Straight-Line Method of depreciation, how much accumulated depreciation will Advantage recognize on its 12/31/2021 Balance Sheet in relation to this machine? $1,600 $800 $1,080 O $1,118
