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5. Depreciation (20 marks) Assume that at the beginning of Year 1, Sweet Chocolate Factory purchased a machine at a cost of $85,000. The Company
5. Depreciation (20 marks) Assume that at the beginning of Year 1, Sweet Chocolate Factory purchased a machine at a cost of $85,000. The Company expects that machine to remain useful for 4 years and to have a residual value of $5,000. 1) Complete depreciation table using double-declining balance method for the first two years only. (12 marks) Net Book Value Rate Depreciation Expense Accumulated Depreciation Net Book Value Year 1 Year 2 2) At the end of Year 2, Sweet Chocolate Factory sold the machine for $25,000. Record the sale of the machine on December 31, Year 2. (8 marks) Date General Journal Debit Credit Dec 31, Year 2
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