On May 1, 20Y1, Unity Company bought a machine for $60,000. Unity estimates the asset's useful life at 10 years, or 100,

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On May 1 20y1 Unity Company Bought A Machine For 60 000 Unity Estimates The Asset S Useful Life At 10 Years Or 100 1 (64.61 KiB) Viewed 37 times

On May 1, 20Y1, Unity Company bought a machine for $60,000. Unity estimates the asset's useful life at 10 years, or 100,000 hours, and its residual value at $10,000. On January 1, 20Y3, Unity sold the machine for $52,500. Unity uses the units of activity method of depreciation and records depreciation annually at the end of its fiscal year, December 31st. Unity used the machine for 8,000 hours in 20Y1 and 11,000 hours in 20Y2. Instructions 1. Prepare the journal entry on December 31, 20Y1 to record fiscal 20Y1 depreciation. 2. Prepare the journal entry on December 31, 20Y2 to record fiscal 20Y2 depreciation. 3. Prepare the journal entry on January 1, 20Y3 to record the disposal of the machine. Note: You do not need to include journal entry descriptions, but you must provide all supporting calculations (or get 50% credit). If necessary, round to the nearest dollar.