Use the following information for questions 28-33. Note that these problems are presented across two separate pages.
In January of 2012, Delilah Manufacturing purchased a machine for $80,000. At the date of purchase, Delilah paid $800 to have the machine delivered. Delilah also incurred $2,300 in installation costs, $300 in costs to test the machine prior to operation, and $1,500 to fix a control panel damaged during installation. The estimated salvage value of the machine was $5,000, and Delilah estimated the machine would have a useful life of 15 years. Delilah estimates that the machine will produce 20,000 units of product during its lifetime. Where applicable, round your answers to two decimal places (e.g., 567.23).
28.) What is the capitalized cost of Delilah's machine? Show your work.
29.) If Delilah produces 1,500 units of product with the machine in 2012, and uses the Units of Production depreciation method, what is the depreciation expense in 2012?
30.) If Delilah uses the double-declining balance depreciation method, what is the depreciation expense in 2012?
31.) If Delilah uses the straight-line depreciation method, what is the depreciation expense in 2012?
Still assuming that Delilah uses the straight-line depreciation method, assume that at the end of three years (i.e., at the end of 2014), Delilah realizes that the machine will only last for 9 years total rather than the 15 years that were originally estimated. Using this new information, provide the depreciation expense going forward for 2015.
32.) In January of 2015, accessories costing $5,200 were spent on the machine in order to improve its output and efficiency. Provide the journal entry to account for this $5,200 expenditure.