Question
In: Accounting
Stay at Home Inc. purchased a machine on January 1st, 2018 for $88,000. The machine has...
| Stay at Home Inc. purchased a machine on January 1st, 2018 for $88,000. The machine has no residual value and a 12 year useful life. | ||||||||||||||
| At the end of the first year, using straight line depreciation, what would depreciation expense be? | ||||||||||||||
| At the end of the second year, what would depreciation expense be? | ||||||||||||||
| At the start of the third year, the company revaluates its estimates and realizes the machine should have a $1,000 residual value and only has 8 years left. | ||||||||||||||
| At the end of the third year, what would depreciation expense be? | ||||||||||||||
| On January 1st, 2021, the company sells their machine to a customer for $60,000. Journalize the sale. (hint, only three years of depreciation have occurred) | ||||||||||||||
Solutions
Expert Solution
The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.
ekkarill92 answered 2 years agoRelated Solutions
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