136. A company purchased equipment valued at $825,000 on January 1. The equipment has an estimated useful life of seven years or six million units. The equipment is estimated to have a salvage value of $35,000. Assuming the straight-line method of depreciation, what is the book value at the end of the second year if .5 million units were produced?
137. Beauty Company purchased a machine valued at $565,000 on September 1. The equipment has an estimated useful life of eight years or 5.5 million units. The equipment is estimated to have a salvage value of $48,300. Assuming the double declining balance method of depreciation is used, what is the amount of depreciation expense that needs to be recorded at the end of the second year if 800,000 units were produced?
138. On July 1 of the current year, a company purchased and placed in service a machine with a cost of $240,000. The company estimated the machine's useful life to be four years or 60,000 units of output with an estimated salvage value of $60,000. During the current year, 15,000 units were produced.
Prepare the necessary December 31 adjusting journal entry to record depreciation for the current year assuming the company uses:
a. The straight-line method of depreciation
b. The units-of-production method of depreciation
c. The double-declining balance method of depreciation