Use the following information for the Exercises below. (Algo) Tory Enterprises pays $250,400 for equipment that will last five years and has a $44,800 salvage value. By using the equipment in its operations for five years, the company expects to earn $89,700 annually, after deducting all expenses except depreciation.

Prepare a table showing income before depreciation, depreciation expense, and net (pretax) income for each year and for the total five-year period, assuming straight-line depreciation is used.

	Income Before Depreciation	Depreciation Expense	Net (Pretax) Income
Year 1
Year 2
Year 3
Year 4
Year 5
Totals

Exercise 10-18 (Algo) Partial-year depreciation; disposal of plant asset LO P2 Rayya Company purchases a machine for $134,400 on January 1, 2021. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is sold on July 1, 2025, during its fifth year of service. Prepare entries to record the partial year's depreciation on July 1, 2025, and to record the sale under each separate situation. (1) The machine is sold for $67,200 cash. (2) The machine is sold for $56,448 cash. View transaction list 1 Record the depreciation expense as of July 1, 2025. > 2 Record the sale of the machinery for $67,200 cash. 3 Record the machine sold for $56,448 cash. Credit