Question: A machine is purchased on January 2, 2011, for $20,000 and it has an expected life of 5 years and no estimated residual value. (a)

A machine is purchased on January 2, 2011, for

$20,000 and it has an expected life of 5 years and no estimated residual value.

(a) If the machine is still in use 6 years later, what amount of depreciation expense will be reported in for the sixth year?

(b) What amount, if any, will be reported on the balance sheet at the end of the sixth year?

[ ] (1) It will not be reported.

[ ] (2) It will be reported as follows:

$

$

$

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