Machine A:The cash price of this machine was $55,000. 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. Thao 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 $80,000. Thao estimates that the usefullife of the machine is 4 years with a $5,000 salvage value remaining at the endof that time period.

a.

b.

   

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Prepare the following for Machine A. (Round answers to 0 decimal places, e.g. $2,125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. The journal entry to record its purchase on January 1, 2014. 2. The journal entry to record annual depreciation at December 31, 2014. No Account Titles and . Explanation Debit Credit Equipment 37000 1. Cash 37000 2. Depreciation E 6400 Accumulated D 6400 Prepare the following for Machine A. (Round answers to 0 decimal places, e.g. $2,125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. The journal entry to record its purchase on January 1, 2014. 2. The journal entry to record annual depreciation at December 31, 2014. No Account Titles and . Explanation Debit Credit Equipment 37000 1. Cash 37000 2. Depreciation E 6400 Accumulated D 6400

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What is the difference in annual depreciation expense for Machine A and Machine B The ... View the full answer