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Bulldog Broadcasting purchased a high-end copy machine with a cost of $60,000 at the beginning of 2019. Transportation costs and calibration costs to get the machine ready for use were $3,000 and $2,000, respectively.

The copy machine has an estimated life of 5 years or 1,000,000 copies (i.e., photocopies). The salvage value of the copy machine is estimated at $10,000. During 2019, 2020, and 2021, the total copies made were 400K, 250K, and 200K, respectively.

Determine the following, and show your work:

What journal entry is needed at the end of 2021 to record depreciation expense using straight-line depreciation?

What is the book value of the copy machine at the end of 2021 using straight-line depreciation?

Now assume Bulldog Broadcasting depreciates the copy machine using double-declining balance depreciation. Prepare a depreciation table, in good form, with column headings of Year, Depreciation Expense, Accumulated Depreciation, and Book Value.

What is the depreciation expense per unit of production using the units-of-production depreciation?

What is the depreciation expense for 2020 using units-of-production depreciation?

What journal entry is needed at the end of 2021 to record depreciation expense using units-of-production depreciation?

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