Gray Matter Technologies, Inc. purchased equipment on January 1, 2018 for $63,000, with an estimated useful...

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Gray Matter Technologies, Inc. purchased equipment on January 1, 2018 for $63,000, with an estimated useful life of 8 years and an estimated residual value of $5,000. Calculate and record depreciation expense for each of the methods below. Your final answer should include three separate journal entries. Clearly label your answers as A, B, and C. (You may free-form your response, or use the insert table feature to clearly identify the accounts and amounts being debited and credited.) A) Straight-line method: What is the journal entry that should be made to record depreciation expense for each full year of the asset's life? (5 points) B) Double-declining-balance method: What is the journal entry that would be made in the SECOND YEAR of the asset's life? (6 points) C) Units of Activity method: The company expects the equipment to be used for a total of 100,000 hours over the next 8 years, and the equipment is used for 17,500 hours this year. What is the journal entry that would be made at the end of this year to record depreciation expense? (5 points) Gray Matter Technologies, Inc. purchased equipment on January 1, 2018 for $63,000, with an estimated useful life of 8 years and an estimated residual value of $5,000. Calculate and record depreciation expense for each of the methods below. Your final answer should include three separate journal entries. Clearly label your answers as A, B, and C. (You may free-form your response, or use the insert table feature to clearly identify the accounts and amounts being debited and credited.) A) Straight-line method: What is the journal entry that should be made to record depreciation expense for each full year of the asset's life? (5 points) B) Double-declining-balance method: What is the journal entry that would be made in the SECOND YEAR of the asset's life? (6 points) C) Units of Activity method: The company expects the equipment to be used for a total of 100,000 hours over the next 8 years, and the equipment is used for 17,500 hours this year. What is the journal entry that would be made at the end of this year to record depreciation expense? (5 points)

Answer rating: 100% (QA)

Case A Total cost Residu... View the full answer