What am I doing wrong P10 3A On January 1, 2008, Pele Company purchased the following two machines for use in its production process Machine A The cash price of this machine was $38,000 Related expenditures included sales tax $1,700, shipping costs $150, insurance during shipping $80, installation and testing costs $70, and $100 of oil and lubricants to be used with the machinery during its first year of operations Pele estimates that the useful life of the machine is 5 years with a $5,000 salvage value remaining at the end of that time period Assume that the straight line method of depreciation is used Machine B The recorded cost of this machine was $160,000 Pele estimates that the useful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period Correct Prepare the following for Machine A 1 The journal entry to record its purchase on January 1, 2008 2 The journal entry to record annual depreciation at December 31, 2008 Account Description Debit Credit 1 Machinery $ 40000 Cash $ 40000 2 Depreciation expense $ 7000 Accumulated depreciation $ 7000 This part is not coming out Incorrect Calculate the amount of depreciation expense that should record for machine B each year of its useful life under the following assumptions (Round depreciation cost per unit to 2 decimal places Round final answers to 0 decimal places, e g 125 ) Pele uses the straight line method of depreciation Pele uses the declining balance method The rate used is twice the straight line rate Pele uses the units of activity method and estimates that the useful life of the machine is 125,000 units Actual usage is as follows 2008, 45,000 units 2009, 35,000 units 2010, 25,000 units 2011, 20,000 units Year 1 Year 2 Year 3 Year 4 1 Straight line $ $ $ $ 2 Declining balance $ $ $ $ 3 Units of activity $ $ $ $ Year 4 1 4000 2 24000 3 2400 Incorrect Which method used to calculate depreciation on machine B reports the highest amount of depreciation expense in year 1 (2008) declining balance methodThis is correct The highest amount in year 4 (2011) units of activity methodall methods are the samedeclining balance methodstraight line method The highest total amount over the 4 year period declining balance methodunits of activity methodall methods are the samestraight line method

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What am I doing wrong? P10-3A On January 1, 2008, Pele Company purchased the following two machines for use in its production process. Machine A

student submitted image, transcription available below What am I doing wrong? P10-3A On January 1, 2008, Pele Company purchased the following two machines for use in its production process. Machine A The cash price of this machine was $38,000. Related expenditures included: sales tax $1,700, shipping costs $150, insurance during shipping $80, installation and testing costs $70, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Pele estimates that the useful life of the machine is 5 years with a $5,000 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used. Machine B The recorded cost of this machine was $160,000. Pele estimates that the useful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period. Correct. Prepare the following for Machine A. 1. The journal entry to record its purchase on January 1, 2008. 2. The journal entry to record annual depreciation at December 31, 2008. Account / Description Debit Credit 1. Machinery $ 40000 Cash $ 40000 2. Depreciation expense $ 7000 Accumulated depreciation $ 7000

This part is not coming out
	Incorrect.

Calculate the amount of depreciation expense that should record for machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places. Round final answers to 0 decimal places, e.g. 125.)

Pele uses the straight-line method of depreciation.
Pele uses the declining-balance method. The rate used is twice the straight-line rate.
Pele uses the units-of-activity method and estimates that the useful life of the machine is 125,000 units. Actual usage is as follows: 2008, 45,000 units; 2009, 35,000 units; 2010, 25,000 units; 2011, 20,000 units.

		Year 1	Year 2	Year 3	Year 4
1.	Straight-line	$	$	$	$
2.	Declining-balance	$	$	$	$
3.	Units-of-activity	$	$	$	$

Year 4

1. 4000

2. 24000

3 .2400


	Incorrect.

Which method used to calculate depreciation on machine B reports the highest amount of depreciation expense in year 1 (2008)? declining-balance methodThis is correct

The highest amount in year 4 (2011)? units-of-activity methodall methods are the samedeclining-balance methodstraight-line method

The highest total amount over the 4-year period? declining-balance methodunits-of-activity methodall methods are the samestraight-line method