SolMfg Company purchased a new machine for $400,000 on September 1, 2020. It is estimated that the machine will have $40,000 residual value at the end of its 5-year useful service life.

Please prepare a depreciation schedule that shows the annual depreciation expense on the machine for its 5-year life.

Instructions

1. Company is using straight line depreciation method;

Year	Depreciable amount	Rate		Annual Depreciation expense		Accumulated Depreciation		Book Value End of Year
2020
2021
2022
2023
2024
2025

2. Please prepare a journal entry on December 31, 2020 to record 2020 depreciation

3. The Company sold the machine on June 30,2023 for $260,000 cash. Please prepare journal entries on June 30,2023.

4. Please prepare the depreciation schedule below if the Company is using double declining method

Year	Book Value Beginning of Year	Rate	Annual Depreciation expense	Accumulated Depreciation	Book Value End of Year
2020
2021
2022
2023
2024
2025

5. The Company sold the machine on June 30, 2023 for $220,000 cash. Please prepare journal entries on June 30,2023