- Ammen company purchased factory equipment on April 1, 2020 for 240,000. It is estimated that the equipment will have a 30,000 residual value at the end of its 7 -years useful life. Using the straight-line method of depreciation. Prepare the depreciation schedule. Answer:

2-Central Machine Tools purchased an industrial machine to be used in its manufacturing process. The purchase price was $62,000. Central paid a freight company $1,000 to transport the machine to its plant location plus $300 shipping insurance. In addition, the machine had to be installed and mounted on a special platform built specifically for the machine at a cost of $1,200. Determine the amount to be reported as the cost of the machine? Answer: