H. A. D. 1 Exercises 2 Exercise C 3. 4 Fine Company purchased a heavy machine to be used in its factory for $ 720,000, less a 2 per cent cash discount. The company paid a fine of $ 3,600 because an employee hauled the machine over city streets without securing the required permits. The machine was installed at a cost of $ 21,600, and testing costs of $7,200 were incurred to place the machine in operation. Prepare a schedule showing 5 the recorded cost of the machine. 6. 8. 1 Exercise D A machine is acquired in exchange for 50 shares of Marley Corporation capital stock. The stock recently traded at $ 400 per share. The 2 machine cost $ 30,000 three years ago. At what amount should the machine be recorded? 7 Exercise E Keely Company purchased some office furniture for $ 29,760 cash on 2009 March 1. It also paid $ 480 cash for freight costs incurred. The furniture is being depreciated over four years under the straight-line method, assuming a salvage value of $ 1,440. The company employs a calendar-year accounting period. On 2010 July 1, it spent $ 192 to refinish the furniture. Prepare journal entries for the Keely 8 Company to record all of the data, including the annual depreciation adjustments through 2010. JOURNAL POST 11 Account/Description Debit Credit Date REF. 24 15 26 27 28 29 B0 31 32 33. 34 35 Book C. H. 35 6 Exercise F On 2018 January 2, a new heavy duty copler was acquired for $ 400,000. The copler has an estimated salvage value of $ 40,000 and an estimated useful life of 6 years. The machine is expected to produce a total of 720,000 units of product throughout its useful life. 7 Compute depreciation for 2018 and 2019 using each of the following methods: 18 1 Straight line. 2. Units of production (assume 30,000 and 60,000 units were produced in 2018 and 2019, respectively). 3 Double-declining balance. 14 15 18 19 52 53 54 55 56 57 58 59 60 61 62