Question $2(20$ marks$).$

Bill Company purchased three machines. Information about the machines is as follows:

$\backslash$table$[[$Machine$,\backslash$table$[[$Acquired time $($month$-],[$day$-$year$)]],$Cost $($$alvage value $($$$),\backslash$table$[[$Useful life in$],[$years$]],$Depreciation method,$],[1,01-01-2007,96,000,6,000,10,$Straight line$],[2,01-01-2006,53,000,3,000,8,$Declining balance$],[3,01-01-2007,86,000,6,000,8,$Units of activity$]]$

For the declining$-$balance method, the firm uses the doubledeclining rate. For the units$-$of$-$activity method, total machine hours are expected to be $40,000.$ Actual hours of use in the first $3$ years were: $2000$ hours of $2007$;$3000$ hours of $2008$; $4000$ hours of $2009.$

Required:

$(1)$ Compute the amount of depreciation on each machine for the year of $2007$ ONLY. $(15$ marks $)$

$(2)$ Journalize the adjusting entry of depreciation for machine $1$ at Dec$\mathrm{.}31,2007.$ Ignore the description of the transaction. $(5$ marks$)$