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20. Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine's useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines' second year depreciation under the units-of- production method A. S16,900. B. $16,000 C. $17,400. D $18,379. E. $20,880. B. D. 21. Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. Determine the machines' first year depreciation under the double-declining-balance method. A. $66,000 $54,000. C. $24,000. $25,800 E $48,000. 22. All of the following statements related to recording warranty expense are true except: A Recording estimated warranty expense complies with the full disclosure principle. B. Warranty expense should be recorded in the period when the warranty service is performed. c. Recording estimated warranty expense complies with the matching principle. D. The seller reports a warranty obligation as a liability E. Warranty costs are probable and the amount can be estimated 23. During August, Boxer Company sells $356,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $12,800 before adjustment Customers returned merchandise for warranty repairs during the month that used $9,400 in parts for repairs. The entry to record the estimated warranty expense for the month is: A. Debit Warranty Expense $17,800; credit Estimated Warranty Liability $17,800. 21. Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. Determine the machines' first year depreciation under the double-declining-balance method. A. $66,000. B. $54,000. C. $24,000. D. $25,800. $48,000. E. 22. All of the following statements related to recording warranty expense are true except: A. Recording estimated warranty expense complies with the full disclosure principle. B. Warranty expense should be recorded in the period when the warranty service is performed. C. Recording estimated warranty expense complies with the matching principle. D. The seller reports a warranty obligation as a liability. E. Warranty costs are probable and the amount can be estimated

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