Problem 7-5B Determine depreciation under three methods (L07-4) (The following information applies to the questions displayed below.) Cheetah Copy purchased a new copy machine. The new machine cost $102,000 including installation. The company estimates the equipment will have a residual value of $25,500. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Year Hours Used 2,000 1,200 2,000 3,000 1 2 3 Problem 7-5B Part 2 2. Prepare a depreciation schedule for four years using the double-declining-balance method. (Hint: The asset will be depreciated in only two years.) (Do not round your intermediate calculations.) CHEETAH COPY Depreciation Schedule-Double-Declining-Balance End of Year Amounts Year Depreciation Accumulated Expense Depreciation Book Value 1 2 3 4 Total $ 0 {The following information applies to the questions displayed below.) Cheetah Copy purchased a new copy machine. The new machine cost $102.000 including installation. The company estimates the equipment will have a residus value of $25,500. Cheetah Copy also estimates it will use the machine for four years of about 8,000 total hours. Actual use per year was as follows Year Hours Used 2,000 1,200 2,000 3.000 1 Problem 7-5B Part 1 Required: 1. Prepare a depreciation schedule for four years using the straight-line method. (Do not round your intermediate calculations.) CHEETAH COPY Depreciation ScheduleStraight Line End of Year Amounts Depreciation Accumulated Expense Depreciation Book Value Year 1 2 3 4 Total $ The Italian Pizza Company purchased land as a factory site for $77.000. Prior to construction of the new building, the land had to be cleared of trees and brush. Construction costs incurred during the first year are listed below: Land clearing costs Sale of firewood to a worker Architect fees (for new building) Title investigation of land Property taxes on land (for the first year) Building construction costs $ 3,700 (530) 17,000 2,200 1,700 270,000 Required: Determine the amounts that the company should record in the land and the new building accounts. (Amounts to be deducted should be indicated by a minus sign.) Land Building Totals $ $ 0