Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following:
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Question:
Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following:
Estimates Machine Life Residual Value Depreciation Method A 4 years $ 1,000 Straight-line B 33,100 hours 2,000 Units-of-production C 5 years 1,500 Double-declining-balance
Machine A | Machine B | Machine C | |||||||
Cost of the asset | $ | 10,020 | $ | 34,890 | $ | 22,100 | |||
Installation costs | 1,610 | 2,110 | 810 | ||||||
Renovation costs prior to use | 610 | 1,410 | 1,610 | ||||||
Repairs after production began | 510 | 410 | 710 | ||||||
By the end of the first year, each machine had been operating 7,100 hours.
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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