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On January 1, 2022, Splish Brothers Company purchased the following… On January 1, 2022, Splish Brothers Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $46,500. Related expenditures also paid in cash included: sales tax $3,700, shipping costs $100, insurance during shipping $50, installation and testing costs $70, and $200 of oil and lubricants to be used with the machinery during its first year of operations. Splish Brothers estimates that the useful life of the machine is 5 years with a $4,300 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used.Machine B: The recorded cost of this machine was $180,000. Splish Brothers estimates that the useful life of the machine is 4 years with a $14,980 salvage value remaining at the end of that time period.   Machine A. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.) 1. The journal entry to record its purchase on January 1, 2022.2. The journal entry to record annual depreciation at December 31, 2022. No.Account Titles and ExplanationDebitCredit1.Equipment50420  Cash 504202.Depreciation Expense9224  Accumulated Depreciation 9224        the amount of depreciation expense that Splish Brothers should record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answers to 0 decimal places, e.g. 2,125.) (1) Splish Brothers uses the straight-line method of depreciation.(2) Splish Brothers uses the declining-balance method. The rate used is twice the straight-line rate.(3) Splish Brothers uses the units-of-activity method and estimates that the useful life of the machine is 111,500 units. Actual usage is as follows: 2022, 43,500 units; 2023, 32,000 units; 2024, 20,500 units; and 2025, 15,500 units.   Depreciation Expense  2022 2023 2024 2025Straight-line method        Declining-balance method        Units-of-activity method             Accounting Business Financial Accounting ACC 201

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