Question: I need help with part B. Thank you Problem 9-3A (Part Level Submission) On January 1, 2017, Evers Company purchased the following two machines for
I need help with part B. Thank you


Problem 9-3A (Part Level Submission) On January 1, 2017, Evers Company purchased the following two machines for use its production process. Machine A The cash price of this machine was $48,000. 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. Evers estimates that the useful life of the machine is 5 years with value remaining at the end $5,000 salvage f 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 $10,000 salvage value remaining at the end of that time period. (a Your answer is correct. decimal places, e.g. 2,125. Credit account titles are automatically indented when amount Prepare the following for Machine A. (Round answers to manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) entered. Do not indent ne jour entry to record ts purchase on Jada mber 31, 2017 journal e to depreciation Credit No. Account Titles and Explanation Debit Equipment 50,000 50,000 Cash Toepreciation Expense 7 9000 Accumulated Depreciati 9000 SHOW ANSWER SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT (b) Calculate the amount of depreciation expense that Evers should record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to places, e.g. 12.25. Round final answers to decimal decimal places, e.g. 2,125.) (1) Evers uses the straight-line method of depreciation. twice the straight-line rate. (2) Evers uses the declining-balance method. The rate used (3) Evers uses the units-of-activity method and estimates that the useful life of the machine is 125,000 units. Actual usage is as follows: 2017, 45,000 units; 2018, 35,000 units; 2019, 25,000 units; 2020, 20,000 units Depreciation Expense 2017 2018 2019 2020 Straight-line method Declining-balance method t Units-of-activity method SHOW LIST OF ACCOUNTS LINK TO TEXT
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
