$25$ pts$.$ Polyester Company purchased a machine in $2022$ for $$1,000,000.$ The machine has a five year life and a salvage value of $$200,000.$ They depreciated the machine for three years using double declining balance depreciation. At the beginning $2025,$ they decided that the machine had five years of useful life remaining and a salvage value of $$60,000$ and should be depreciated using straight line depreciation.

Journalize the depreciation expense for $2025($year $4).$

Polyester Company also had been using the completed contract or cost plus method to recognize profits for $2022.$ They have chosen to use the percentage of completion method beginning with $2023$ and correct any bonuses paid in the past. CEO Johann von Krock is paid a bonus of $5\%$ of construction profits.

Determine the amount of bonus paid to the CEO in $2023$ and show the incomes and bonuses reported on the income statements shown for both $2023$ and $2022$ using the percentage of completion method for comparative purposes.

$\backslash$table$[[,,,,,,,,],[$Income$,2023,2022,,,,,,],[$Bonus$,,,,,,,,],[$Net Income,,,,,,,,$],[,,,,,,,,],[,,,,,,,,],[,,,,,,,,],[,,,,,,,,]]$