Adjustment for Depreciation CORNERSTONE 3.6 LaGarde Company has a machine that it purchased for \(\$ 125,000\) on January 1. Annual depreciation on the machine is estimated to be \(\$ 14,500\).

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\section*{Required:}

1. Prepare the adjusting entry needed at the end of the year.

2. What is the net book value of the machine reported on LaGarde's statement of financial position at the end of the year?

\section*{OBJECTIVE 4 CORNERSTONE 3.3 CORNERSTONE 3.4 CORNERSTONE 3.5 CORNERSTONE 3.6}

\section*{Cornerstone Exercise