In: Accounting
Benson Company bought a machine costing $120,000 on 1 April
2015. Management estimated the useful life to be 10 years and the
residual value to be $20,000.
On 1 January 2018, management revised the useful life and residual
value of the machine. The remaining useful life was revised to 5
years while the residual value was revised to $10,000.
The company’s financial year end is 31 December.
Compute the depreciation expense, accumulated depreciation and net
book value of the machine for 2015, 2016, 2017 and 2018.