1. ABC purchased a machine on Jan 1, 2016 for $61819 with an estimated useful life of 23 years and no salvage value

• ABC uses the straight line depreciation method
• On Jan 1, 2018 ABC estimates the machine will have a remaining useful life of 19 years

1. The carrying value of the machine on 2018 is: __________
2. Depreciation expense for 2018 is: ____________

2. During 2014, ABC installed a production assembly line

• In 2015, ABC purchased a new machine and rearranged the assembly line to install this machine
• The rearrangement did not increase the estimated useful life of the assembly line, but it did result in significantly more efficient production
• The following expenditures were incurred in connection with this project
  • $171700 for machine
  • $126200 labor to install machine
  • $122900 parts added in rearranging the assembly line to provide future benefits
  • $115900 labor and overhead to rearrange the assembly line
  The amount of the expenditures that should be capitalized in 2015 is: ______________