Question 4 Macon Bacon Assembly Company purchased a machine on January 2, 2024, by paying cash of $25,000 and signing a 6% note payable for $60,000 repayable over 3 years at $20,000 per year plus interest annually. The machine has an estimated useful life of five years (or the production of 200,000 units) and an estimated residual value of $5,000. Required: 1. Determine depreciation expense (to the nearest dollar) for each year of the machine's useful life under (a). straight-line depreciation; and (b). the double declining balance method. 2. What is the book value of the machine after three years with the double declining- balance method? 3. What is the book value of the machinery after three years with straight-line depreciation? 4. If the machine was used to produce and sell 48,000 units in 2024, what would the depreciation expense be under the units of production method. Question 5 Tweed Feed & Seed purchased a new machine on January 1, 2023: Cost when acquired Estimated residual value Estimated useful life $260,000 40,000 10 years Accumulated depreciation at the end of year 5 (assume straight-line depreciation) 110,000 It is now the beginning of year 6 and the management reevaluated the estimates related to the machine. Compute the depreciation expense for year 6 under each of the following independent cases: Case Event A The estimated total useful life is changed to 15 years Depreciation Expense B The residual value is changed to zero; useful life unchanged. The estimated total useful life is changed to 8 years and the residual value is changed to $10,000. Question 6 Hilman Company purchased a truck on January 1, 2023, at a cost of $52,000. The company estimated that the truck would have a useful life of 4 years and a residual value of $4,000. Required: 1. Complete the following table: Year Depreciation Depreciation Straight-line method Declining balance method 2023 2024 2025 2026 2. Which of the two methods in part 1 would result in a. Lower net income in 2023? b. Lower net income in 2026? Question 7 Mildew Company borrowed $75,000 on an 8% interest-bearing note payable on March 1, 2023. The maturity date of the note (and payment of all interest) is September 1, 2024. The accounting period ends December 31. Give the journal entry for each of the following dates. Assume simple interest. Round to the nearest dollar. A. March 1, 2023 B. December 31, 2023 C. September 1, 2024