P4. Coyote Manufacturing bought a machine for $100,000 on November 1, 2018. To install the...
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P4. Coyote Manufacturing bought a machine for $100,000 on November 1, 2018. To install the machine Coyote Manufacturing spent $10,000. It was estimated that the useful life be 4 years or 1,000,000 machine- hours. And the residual value at the end of the useful life be $10,000. Number of hours that the machine has been used or will be used are as follows: 2018 2019 2020 2021 2022 150,000 hours 250,000 280,000 240,000 80,000 Instructions: 1. Prepare journal entries for the purchase of the truck on November 1, 2018. 2. Compute depreciation expenses on the machine for the years ending on December 31 of 2018 and 2019 using following methods; 1) Straight-line method, 2) Activity based method, 3) Sum-of-the-years-digit, 4) Double declining method. 3. Coyote sold this machine for $60,000 on January 1, 2020 - Prepare any necessary journal entries for this sale using Sum-of-years'-digit method
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