7) On January 1, Tiger Corp. paid $66,000 cash for machinery that was expected to last for 11 years.

1. Is the machinery a current asset or a long-term asset? Why?

2. Give Tigers journal entry to record the purchase of the machinery.

3. Give Tigers journal entry to record depreciation expense on the machinery for the first year.

4. Give Tigers journal entry to record depreciation expense on the machinery for the second year.

5. What is the balance in accumulated depreciation at the end of the first year? At the end of the second year?

6. What is the net (book) value of the machinery at the end of the first year? At the end of the second year? At the end of the 11th year?