1. Maple Company's wood pressing machine was purchased for $18 million on January 1, 20X1....
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1. Maple Company's wood pressing machine was purchased for $18 million on January 1, 20X1. It needed to be tested upon installation, which cost an additional $2 million. The salvage value is estimated at $4 million, and the machine has a service life of five years. Maple has a December 31 fiscal year-end. What is the depreciation expense for year four (year 20X4) under the double declining balance method? (1 point) Assume the same facts as above. Maple uses double declining balance initially, but at 1/1/20X4 Maple decides straight-line depreciation would be more appropriate. At that time, Maple also changes the estimated useful life to a total of six years (three years remaining) and a salvage value of $2 million. What is the depreciation expense for 20X4? (1 point) Assume the same purchase information as above, but Maple instead uses sum-of-the- years'-digits to depreciate this machine from the time of purchase. Maple decides to sell the machine at the end of 20x3 and receives cash proceeds from the sale of $8,000,000. What is the journal entry to record the sale? (1 point)
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