Murphy's Auto Co. purchased a large piece of equipment on January 1, 2004. The equipment is...

 

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Murphy's Auto Co. purchased a large piece of equipment on January 1, 2004. The equipment is being depreciated, using the straight-line method, at the rate of $10,000 per year with no salvage value. On January 1, 2015, after 2014's year end adjusting journal entires are made, the book value of the machine was $190,000. (a) What was the original cost of the machine? Describe how you arrived at your amount. (b) What will the book value be on January 1st 2018 after 2017 adjusting journal entries are made? Describe how you arrived at you amount. (c) Provide the ADJUSTING JOUTNAL ENTRY FOR any year to reflect depreciation. account xx account yy debit credit Murphy's Auto Co. purchased a large piece of equipment on January 1, 2004. The equipment is being depreciated, using the straight-line method, at the rate of $10,000 per year with no salvage value. On January 1, 2015, after 2014's year end adjusting journal entires are made, the book value of the machine was $190,000. (a) What was the original cost of the machine? Describe how you arrived at your amount. (b) What will the book value be on January 1st 2018 after 2017 adjusting journal entries are made? Describe how you arrived at you amount. (c) Provide the ADJUSTING JOUTNAL ENTRY FOR any year to reflect depreciation. account xx account yy debit credit

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Murphys Auto Co Equipment Depreciation a Original Cost of the Machine We can find the original cost ... View the full answer