Question 16 (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 Double-Declining-Balance Method of depreciation, how much depreciation expense will Advantage recognize on its 2022 Income Statement in relation to this machine? $1,000 O $1,800 $1,080 $800 Question 17 (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 Double-Declining-Balance Method of depreciation, how much accumulated depreciation will Advantage recognize on its 12/31/2021 Balance Sheet in relation to this machine? $1,080 $2,880 $3,600 O $1,800 Question 18 (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 Double-Declining-Balance Method of depreciation, how much accumulated depreciation will Advantage recognize on its 12/31/2022 Balance Sheet in relation to this machine? $2,880 $1,080 $3,600 $1,800 Question 19 (4 points) Saved On January 1, 2021 Madison Co. purchased a machine for $600,000. The machine has a useful life of 5 years, and a residual value of $100,000. Madison Co. uses the straight-line method to account for its depreciation. On January 1, 2023 Madison Co. sells the machine. Assume Madison Co. sells the machine for $400,000 cash. Please provide the journal entry Madison will record in relation to the sale: Dr. Cash $400,000 Cr. Accumulated Depreciation $200,000 Cr. Machine $200,000 Dr. Cash $400,000 Dr. Machine $400,000 Dr. Accumulated Depreciation $400,000 Cr. Machine $400,000 Dr. Cash $400,000 Dr. Accumulated Depreciation $200,000 Cr. Machine $600,000 Question 20 (4 points) On January 1, 2021 Madison Co. purchased a machine for $600,000. The machine has a useful life of 5 years, and a residual value of $100,000. Madison Co. uses the straight-line method to account for its depreciation. On January 1, 2023 Madison Co. sells the machine. Assume Madison Co. sells the machine for $407,812 cash. Please provide the journal entry Madison will record in relation to the sale: Dr. Accumulated Depreciation $407,812 Cr. Machine $407,812 Dr. Cash $407,812 Dr. Accumulated Depreciation $200,000 Cr. Machine $600,000 Cr. Loss $7,812 Dr. Cash $407,812 Cr. Machine $407,812 Dr. Cash $407,812 Dr. Accumulated Depreciation $200,000 Cr. Machine $600,000 Cr. Gain $7,812
