Question: The Wilcox Company acquires four machines that have the following characteristics: Required 1. Prepare journal entries to record the acquisition and the first year's depreciation,

The Wilcox Company acquires four machines that have the following characteristics:


The Wilcox Company acquires four machines that have the followin


Required
1. Prepare journal entries to record the acquisition and the first year's depreciation, assuming that the composite method is used on a straight-line basis.
2. If the company sells machine B after four years for $10,000, prepare the journal entry.
3. What arguments may be used to support the composite depreciationmethod?

Estimated Residual Value $2,000 1,000 5,000 Estimated Service Life 6 years 9 5 7 Machine Cost $26,000 19,000 30,000 28,000

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