The Jacob Company uses various methods to record depreciation on different type of assets.

It depreciates Building A using the sum of the years method, machine Z based on the double declining balance method and machine W based on the activity method.

Building A was purchased on April 1, 2013 at a cost of $6,200,000. It has a salvage value of $400,000 and a life of 20 years.

Machine Z was purchased on June 1, 2013 at a cost of $62,000. It has a salvage value of $2,000 and a life of 8 years.

Machine W was purchased on July 1, 2013 at a cost of $450,000 having a residual value of $35,000 and is estimated to be able to produce 100,000 units in its lifetime. In 2013 21,000 units were produced, 52,000 units in 2014 and 49,000 units in 2015.

Required:

1)Calculate the depreciation expense or each asset for the years 2013 -2015.

2)Prepare the entry to record the depreciation expense for the full year 2015.

3)Suppose on January 1, 2016 Jacob sells machine Z to Andrew Company at a price of $31,500. Record the entry on Jacobs books including any possible gain or loss.