Question 1 of 6 < > View Policies Show Attempt History Current Attempt in Progress On January 1, 2022, Novak Company purchased the following two machines for use in its production process. Machine A: Machine B: 1.67/20 E E The cash price of this machine was $43,000. Related expenditures also paid in cash included: sales tax $1,700, shipping costs $200, insurance during shipping $100, installation and testing costs $70, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Novak estimates that the useful life of the machine is 5 years with a $4,050 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 $180,000. Novak estimates that the useful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period. (a) Your answer is partially correct. Prepare the following for Machine A. (Round answers to O decimal places, e.g. 5,125. List all debit entries before credit entries. Credit account titles are automatically indented when 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.) 1. The journal entry to record its purchase on January 1, 2022. 2. The journal entry to record annual depreciation at December 31, 2022. (a) Your answer is partially correct. Prepare the following for Machine A. (Round answers to O decimal places, e.g. 5,125. List all debit entries before credit entries. Credit account titles are automatically indented when 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.) 1. The journal entry to record its purchase on January 1, 2022. 2. The journal entry to record annual depreciation at December 31, 2022. No. Account Titles and Explanation 1. 2. Depreciation Expense Accumulated Depreciation-Equipment eTextbook and Media List of Accounts Debit Credit Last saved 1 cocond age Attempte: 1 of 2uced. (b) Calculate the amount of depreciation expense that Novak should record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answers to O decimal places, e.g. 2,125.) (1) Novak uses the straight-line method of depreciation. (2) Novak uses the declining-balance method. The rate used is twice the straight-line rate. (3) Novak uses the units-of-activity method and estimates that the useful life of the machine is 103,000 units. Actual usage is as follows: 2022, 45,000 units; 2023, 31,000 units; 2024, 17,000 units; 2025, 10,000 units. Straight- line method Declining- balance method Units-of- activity method eTextbook and Media Depreciation Expense 2022 2023 2024 $ $ $ $ $ $ $ 2025