Question
A company purchased a machine for $75,000 that was expected to last 6 years and to have a salvage value of $6,000. At the beginning
A company purchased a machine for $75,000 that was expected to last 6 years and to have a salvage value of $6,000. At the beginning of the machine's fourth year the company decided that the machine's estimated useful life should be revised to a total of 10 years instead of 6 years. Also, the salvage value was re-estimated to be $5,500. Straight-line depreciation was used throughout the machine's life
I have done A-D but need help on E thanks!!!!!
A. What is the amount of accumulated depreciation at the end of the third year?
B. What is the net book value of the equipment at the end of the third year?
C. Calculate the depreciation expense for the fourth year of the machines useful life.
D. Record the depreciation entry for year 4.
E. Prepare the partial balance sheet at the end of year 4.
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