Xeno Co. incurred the following transactions concerning its machinery: Jan 1, 2021Purchased a machine for $60,000 cash,
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Question:
Xeno Co. incurred the following transactions concerning its machinery:
Jan 1, 2021Purchased a machine for $60,000 cash, and also paid $3,000 cash to have it installed. Estimated useful life is 10 years and residual value is $3,000. Straight line depreciation is used.
Jan 1, 2022The machine’s useful life was changed from 10 years to 9.
Jan 8, 2023Paid $3,800 to replace a motor in the machine. This was considered a major overhaul.
Xeno Co uses the calendar year as its fiscal year. Prepare the journal entry to record depreciation expense for 2021, 2022 and 2023. Round all values to the nearest dollar.
Related Book For
Canadian Income Taxation planning and decision making
ISBN: 9781259094330
17th edition 2014-2015 version
Authors: Joan Kitunen, William Buckwold
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