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Question 1 On January 1, 2017, Sandhill SA purchased the following two machines for use in its production process The cash price of this machine
Question 1 On January 1, 2017, Sandhill SA purchased the following two machines for use in its production process The cash price of this machine was R$47,100. Related expenditures included: sales tax R$3,800, shipping costs R$130, insurance during shipping R$90, installation and testing costs R$80, and R$190 of oil and lubricants to be used with the machinery during its first year of operations. Sandhill estimates that the useful life of the machine is 5 years with a R$5,900 residual 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 R$140,800. Sandhill estimates that the useful life of the machine is 4 years with a R$8,800 residual value remaining at the end of that time period Machine A: Machine B: Prepare the following for Machine A. (Round answers to O decimal places, e.g. 2,125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) l The journal ntry to record anualderecia ionat ecember 31, 2017. 2. The journal entry to record annual depreciation at December 31, 2017. No. Account Titles and Explanation Debit Credit 2
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