On January 2, 2004, the Allen Flour Company purchased a new machine at a cost of $82,000.

Question:

On January 2, 2004, the Allen Flour Company purchased a new machine at a cost of $82,000. Installation costs for the machine were $3,000. The machine was expected to have a useful life of 10 years, with a of $3,000. The company uses straight-line depreciation for financial reporting. On January 3, 2007, the machine broke down, and an extraordinary repair had to be made to the machine at a cost of $8,000. The repair extended the machine's life to 13 years, but left the unchanged. On January 2, 2010, an improvement was made to the machine in the amount of $5,000 that increased the machine's productivity and increased the (to $6,000), but did not affect the remaining useful life. Determine depreciation expenses every December 31st for the years 2004, 2007, and 2010. Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...