Grace Period: 11 days left Register PRINTER VERSION BACK NEXT Problem 10-3A (Part Level Submission) On January 1, 2017, Evers Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $49,500. Related expenditures included: sales tax $3,650, shipping costs $100, insurance during shipping $60, installation and testing costs $110, and $150 of oil and lubricants to be used with the machinery during its first year of operations. Evers estimates that the useful life of the machine is 5 years with a $5,350 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 $180,000. Evers estimates that the useful life of the machine is 4 years with a $10,250 salvage value remaining at the end of that time penod. (a) Your answer is correct. Prepare the following for Machine A. (Round answers to o decimal places, e.g. 5,125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) 1. The journal entry to record its purchase on January 1, 2017. 2. The journal entry to record annual depreciation at December 31, 2017. No. Account Titles and Explanation Debit Credit 1. Equipment 553,420 Cash $53,420 2. Depreciation Expense 59,614 Accumulated Depreciation Equipment $9,614 Click if you would like to show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER PRINTER VERSION BACK NEX Attempts: 2 of 3 used (b) Calculate the amount of depreciation expense that Evers should record for Machine each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answers to o decimal places, e.g. 2,125.) (1) Evers uses the straight-line method of depreciation. (2) Evers uses the declining-balance method. The rate used is twice the straight-line rate. (3) Evers uses the units-of-activity method and estimates that the useful life of the machine is 157,450 units. Actual usage is as follows: 2017, 58,500 units; 2018, 44,500 units; 2019, 30,500 units; 2020, 23,950 units. Depreciation Expense 2019 2017 2018 2020 Straight-line method $ $ Declining-balance method $ $ $ $ Units-of-activity method 5 Click if you would like to show Work for this question: Open Show Work Attempts: 0 of 3 used