Problem #3 Depreciation (30 points) Buthainah Corp. purchases a new machine on January 1, 2017....
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Problem #3 Depreciation (30 points) Buthainah Corp. purchases a new machine on January 1, 2017. Information on this machine is as follows (year-end is December 31st): Purchase price $ 20,100 Salvage value 2,010 Useful life 10 years Instructions 1. Calculate depreciation expense (to the nearest dollar) via each of the following methods, showing the calculations used: (a) Straight-line for 2017 (4 points) (b) Double-declining balance for 2017 (3 points) and 2018 (4 points) 2017: 2018: (c) Sum-of-the-years'-digits for 2017 (4 points) and 2018 (4 points) 2017: 2018: 2. Assume straight-line depreciation is used. During 2021, the company changed the estimated useful life of the machine to sixteen years (i.e., through December 31, 2032). The salvage value does not change. (a) Calculate depreciation expense (to the nearest dollar) for 2021 (5 points). (b) Prepare the journal entry to record depreciation in 2021 (2 points). 3. As a continuation from Part 2, assume the machine was sold on December 31, 2025 for the following amount: $ 8,375.00 Prepare the journal entry to record the sale of the machine (4 points)
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