Record your answers for each of the following in the spreadsheet template provided for this practice exercise. 1. Vijay's Deliveries purchased a truck on February 1, 2015. The truck cost $40 000, has a useful life of seven years and a residual value of $5 000. It is estimated that over life of the truck, it will be able to travel 500 000 km. It traveled 120 000 km in 2015, and is projected to travel 110 000 km in 2016.Calculate the amortization expense for 2015 using the three methods of amortization (straight-line, usage and double declining balance) at December 31. 2. In recent years, Gadget Company purchased three machines. Amortization methods were chosen based on the estimated life and use of each machine: Machine Date Purchased Cost Residual Value Useful Life Amortization Method A Jan. 1, 2013 $85,000 $5,000 10 Straight-Line B Jan. 1, 2013 $100,000 $10,000 5 Declining Balance C Feb. 1, 2013 $90,000 $5,000 6 Units of Activity For the declining balance method, the company uses double the straight-line rate. Machine C is expected to produce 50 000 units over its useful life. The actual usage was 8 000 units for 2013, 10 000 units for 2014, and 9 000 units for 2015. a) Calculate the amortization expense for each machine in 2013, 2014, and 2015. b) Calculate the accumulated amortization for each machine at December 31, 2015. c) Record the journal entry to record the amortization for machines A, B and C on December 31, 2015. 3. Presented below are selected transactions from Siambanopolis Company for 2015. Amortization is calculated on a straight-line basis. You will have to calculate accumulated amortization. Journalize each transaction. a) On January 1, the company retired a piece of machinery that was purchased on January 1, 2009 for $6 000. It had a useful life of six years and no residual value. b) On June 30, the company sold a computer purchased on January 1, 2010. It was sold for $600. The computer cost $4 000 and had a useful life of six years with a residual value of $250. c) On January 1, the company discarded a delivery truck that was purchased on January 1, 2010. The truck cost $30 000. It was amortized based on a six-year useful life with a $3 000 residual value. 4. The Reid Beverages Corporation acquired a new truck that had a list price of $50 000 on January 1, 2015. They traded in their old truck. The old truck had a historical cost of $35 000, with accumulated amortization of $25 000. The company paid the list price minus the trade-in amount of $3 000. The fair market value of the old machine was $2 000. Record the journal entry for this transaction. 5. At the beginning of 2011, the Beliveau Gold Company bought mining equipment costing $50 000. It was estimated then that the equipment had a useful life of five years and a residual value of $5 000. The straight-line method is considered the most appropriate method to use for amortization. The amortization will be recorded at the end of each year. At the beginning of 2013, an adjustment is made in the estimation of the useful life. It is now estimated that the equipment will have a total useful life of seven years, not five. At the beginning of 2015, the residual value is reduced to $2 500. Calculate the Amortization Expense for each year from 2011 - 2017. Record your answer in the table provided