On April 3, 2023, Davids Chocolates purchased a machine for $71,200. It was assumed that the machine

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On April 3, 2023, David’s Chocolates purchased a machine for $71,200. It was assumed that the machine would have a five-year life and a $15,200 trade-in value. Early in January 2026, it was determined that the machine would have a seven-year useful life and the trade-in value would be $8,000. David’s Chocolates uses the straight-line method to the nearest month for calculating depreciation.


Required
Record depreciation at December 31, 2026, David’s Chocolates’ year-end. Round to the nearest whole dollar.

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Fundamental Accounting Principles Volume 2

ISBN: 9781260881332

17th Canadian Edition

Authors: Kermit D. Larson, Heidi Dieckmann, John Harris

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