The company acquired a new machine on January 1, 2018, at a cost of $19,000. The firm
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- The company acquired a new machine on January 1, 2018, at a cost of $19,000. The firm incurred an additional $2000 in shipping and installation costs in order to make the equipment operational. The machine's estimated life was 5 years and it had an estimated salvage value of $1,000. Bergen accrues its depreciation expense annually. Bergen uses straight-line depreciation.
- What entry would Bergen make for depreciation expense on December 31, 2018? What entry would Bergen make if it sold the equipment on December 31 for $15,000? What entry would Bergen make if instead, it sold the equipment on December 31 for $20,000? What entry would Bergen make on December 31 if it used the double-declining method of depreciation instead of a straight line?
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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