1- On January 1, 2020, Ferrero Inc. borrowed $500,000 by signing a note payable. The note is for 5 years and bears interest at the rate of 8%. The note is payable in 5 yearly installments of $125,219 due at the end of every year beginning on December 31, 2020. These installments include the principal and interest. What is the amount due on the loan after the second annual payment is made? Show your work. _____________________

9) On January 1, 2020, Zade Manufacturing Company purchased a machine for $40,000. The company expects to use the machine for 24,000 hours over the next 6 years. The estimated salvage value of the machine at the end of the sixth year is $40,000. The company used the machine for 3,600 hours in 2020 and 5,000 hours in 2021. Calculate the depreciation expense and accumulated depreciation for the years 2020 and 2021 using straight-line, units-of-production, and double declining balance methods of depreciation? Show your work/calculations

Straightline

2020

2021

Depreciation Expense

Accumulated depreciation

Units of Production

2020

2021

Depreciation Expense

Accumulated depreciation

Double declining balance

2020

2021

Depreciation Expense

Accumulated depreciation