Depreciation Methods Assignment Problem 1 On August 31, 2014, a company acquired and placed in service a machine at a cost of $60,000. It is estimated that the machine has a useful life of four years or 100,000 units of production. Salvage value is estimated to be $5,000. The company year-end is December 31. Using Excel, prepare depreciation schedules similar to the depreciation lecture and the Laulima Lesson examples showing columns for: year-ended; annual depreciation amounts; accumulated depreciation; and remaining book value at the end of each year under each of the following methods: 1. Straight-line method 2. Units of Production: Year 1--9,500 units produced Year 2--28,000 units Year 3--23,000 units Year 4--24,000 units Year 5--19,000 units 3. Double Declining Balance Method Problem 2 On January 7, 2014 a company purchased a machine for $75,000 that was expected to last 5 years and to have a salvage value of $5,000. At the beginning of the machine's third year the company decided that the machine's estimated useful life should be revised to a total of 7 years instead of the original 5 years. Also, the salvage value was re-estimated to be $2,000. Straight-line depreciation will be used throughout the machine's life. 2a. Prepare a depreciation schedule (using Excel) showing columns for: year-ended; annual depreciation expense; accumulated depreciation; and remaining book value for each year of its useful life. 2b. Assume the same information above except that the machine is sold on June 30, 2019 for $15,000 cash. Prepare any general journal entries needed to record the sale of the machine