Question: A machine was acquired for $7,000 on May 1 of Year 1. Depreciation expense on the machine for Year 1 was $1,000. Depreciation expense on

A machine was acquired for $7,000 on May 1 of Year 1. Depreciation expense on the machine for Year 1 was $1,000. Depreciation expense on the machine for Year 2 was $1,500. (1) Make the journal entry necessary on December 31 of Year 2 to record depreciation expense on the machine for the year. (2) Compute the accumulated depreciation on the machine as of December 31 of Year 2. (3) Compute the book value of the machine as of December 31 of Year 2.

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