A machine costing $$214,000$ with a four$-$year life and an estimated $$18,000$ salvage value is installed in Luther Company's factory on January $1.$ The factory manager estimates the machine will produce $490,000$ units of product during its life. A actually produces the following units: $122,300$ in Year $1,123,800$ in Year $2,119,800$ in Year $3,134,100$ in Year $4.$ The total number of units produced by the end of Year $4$ exceeds the original estimate$-$this difference was not predicted. Note: The machine cannot be depreciated below its estimated salvage value.

Required:

Compute depreciation for each year $($and total depreciation of all years combined$)$ for the machine under each depreciation method. Note: Round your per unit depreciation to $2$ decimal places. Round your answers to the nearest whole dollar.

Complete this question by entering your answers in the tabs below.

Straight Line

Units of Production

DDB

Compute depreciation for each year $($and total depreciation of all years combined$)$ for the machine under the Straight$-$line depreciation.

$\backslash$table$[[$Straight$-$Line Depreciation$],[$Year$,\backslash$table$[[$Depreciation$],[$Expense$]]],[$Year $1,],[$Year $2,],[$Year $3,],[$Year $4,],[$Total$,]]$

On July $23$ of the current year, Dakota Mining Company pays $$7,788,240$ for land estimated to contain $8,952,000$ tons of recoverable ore. It installs and pays for machinery costing $$2,058,960$ on July $25.$ The company removes and sells $461,500$ tons of ore during its first five months of operations ending on December $31.$ Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined.

Problem $8-7$A $($Algo$)$ Part $1-4$

Required:

Prepare entries to record the following.

$($a$)$ The purchase of the land.

$($b$)$ The cost and installation of machinery.

$($c$)$ The first five months' depletion assuming the land has a net salvage value of zero after the ore is mined.

$($d$)$ The first five months' depreciation on the machinery.

Complete this question by entering your answers in the tabs below.

Required A

Required B

Required C$1$

Required C$2$

Required D$1$

Required D$2$

Prepare the journal entry to record the purchase of the land.

On July $23$ of the current year, Dakota Mining Company pays $$7,788,240$ for land estimated to contain $8,952,000$ tons of recoverable ore. It installs and pays for machinery costing $$2,058,960$ on July $25.$ The company removes and sells $461,500$ tons of ore during its first five months of operations ending on December $31.$ Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined.

Problem $8-7$A $($Algo$)$ Part $1-4$

Required:

Prepare entries to record the following.

$($a$)$ The purchase of the land.

$($b$)$ The cost and installation of machinery.

$($c$)$ The first five months' depletion assuming the land has a net salvage value of zero after the ore is mined.

$($d$)$ The first five months' depreciation on the machinery.

Complete this question by entering your answers in the tabs below.

Required A

Required B

Required C$1$

Required C$2$

Required D$1$

Required D$2$

Prepare the journal entry to record the purchase of the land.

On July $23$ of the current year, Dakota Mining Company pays $$7,788,240$ for land estimated to contain $8,952,000$ tons of recoverable ore. It installs and pays for machinery costing $$2,058,960$ on July $25.$ The company removes and sells $461,500$ tons of ore during its first five months of operations ending on December $31.$ Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined.

Problem $8-7$A $($Algo$)$ Part $1-4$

Required:

Prepare entries to record the following.

$($a$)$ The purchase of the land.

$($b$)$ The cost and installation of machinery.

$($c$)$ The first five months' depletion assuming the land has a net salvage value of zero after the ore is mined.

$($d$)$ The first five months' depreciation on the machinery.

Complete this question by entering your answers in the tabs below.

Required A

Required B

Required C$1$

Required C$2$

Required D$1$

Required D$2$

Prepare the journal entry to record the purchase of the land.

On July $23$ of the current year, Dakota Mining Company pays $$7,788,240$ for land estimated to contain $8,952,000$ tons of recoverable ore. It installs and pays for machinery costing $$2,058,960$ on July $25.$ The company removes and sells $461,500$ tons of ore during its first five months of operations ending on December $31.$ Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore iiiissssIs mmmmiiiinnnneeeed