uiz Property Plant and Equipment Problem 1 (35%) The Hartley Clinic purchased a new surgical laser for $90,000. The estimated salvage value is $5,000. The laser has a useful life of five years and the clinic expects to use it 10,000 hours. It was used 1,600 hours in year 1; 2,200 hours in year 2; 2,400 hours in year 3; 1,800 hours in year 4; 2,000 hours in year 5. Instructions Compute the annual depreciation for the first, second and third years under each of the following methods: (1) (2) straight-line. units-of-activity. Problem 2 (35%) Golden Company sold the following machine in 2017: Machine Cost $76,000 Purchase date July 1, 2013 Useful life 8 years Salvage value $4,000 Depreciation method Straight-line Date sold July 1, 2017 Sales price $35,000 At December 31, 2016, there was $31,500 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. Instructions Journalize all entries required to update depreciation and record the sales of the asset in 2017. (Hint: there are 2 journals entries) Problem 3 (30%) A company purchased a patent on January 1, 2017, for $2,500,000. The patent's legal life is 20 years but the company estimates that the patent's useful life will only be 5 years from the date of acquisition. On June 30, 2017, the company paid legal costs of $135,000 in successfully defending the patent in an infringement suit (hint: useful life: 54 months). Instructions Prepare the journal entry to amortize the patent at year end on December 31, 2017