Question 1 Part A: Assume that a company buys a machine on January 1, 20XX that it will use in its business. The cost of the machine is $16,000, the salvage value is estimated to be $1,000, and the machine is expected to produce 30,000 units during its life. The depreciation for the year 20X1 when the machine produced 2,000 units, using the units of production method, would be ____.

a		$900
b		$1,000
c		$1,066
d		$1,250
e		$1,333

Part B: Assume that a company buys a machine on January 1, 20XX that it will use in its business. The cost of the machine is $18,000, the salvage value is estimated to be $2,000, and the estimated useful life of the asset is 10 years. The depreciation for the year 20X1, using the straight-line method, would be ____.

a		$1,400
b		$1,600
c		$1,800
d		$2,000

Part C: If a company receives a bill of $57,000 and decides to pay it next month, what is the appropriate journal entry?

a		debit prepaid expenses, credit accounts payable
b		debit prepaid expenses, credit cash
c		debit account receivable, credit expenses
d		debit accounts payable, credit expenses
e		debit expenses, credit accounts payable