Question $3$ of $7$

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On January $1,2020,$ Bridgeport SA purchased the following two machines for use in its production process.

Machine A: The cash price of this machine was $R$$$49,000.$ Related expenditures included: sales tax $R$$$3,900,$ shipping costs $R$$$200,$ insurance during shipping $R$$$90,$ installation and testing costs $R$$$80,$ and $R$$$150$ of oil and lubricants to be used with the machinery during its first year of operations. Bridgeport estimates that the useful life of the machine is $5$ years with a $R$$$4,600$ residual value remaining at the end of that time period. Assume that the straight$-$line method of depreciation is used.

Machine B: The recorded cost of this machine was $R$$$91,200.$ Bridgeport estimates that the useful life of the machine is $4$ years with a $R$$$4,000$ residual value remaining at the end of that time period.

Prepare the following for Machine A$.($Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

The journal entry to record its purchase on January $1,2020.$

The journal entry to record annual depreciation at December $31,2020.$

Question $3$ of $7$

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Calculate the amount of depreciation expense that Bridgeport should record for Machine B each year of its useful life under the following assumptions. $($Round answers to $0$ decimal ploces, es $2,125.$ Round cost per unit to $2$ decimal place, es$.1\mathrm{.}25.)$

$(1)$ Bridgeport uses the straight$-$line method of depreciation.

$(2)$ Bridgeport uses the declining$-$balance method. The rate used is twice the straight$-$line rate

$(3)$ Bridgeport uses the units$-$of$-$activity method and estimates that the useful life of the machine is $133,500$ units. Actual usage is as follows: $2020,50,500$ units; $2021,35\mathrm{.}000$ units; $2022,29,000$ units; $2023,19,000$ units

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