Calculate the annual depreciation expense for the new machine using the straight-line method of depreciation:

Present journal entries to record each of the following events relating to a polishing machine owned by Crawford Company. Crawford uses the straight-line method of recording depreciation on machinery and has a December 31 fiscal year.

On January 1, Year 1 Crawford Company acquires a polishing machine costing $60,000 for cash. It estimates the machine to have a nine-year life and $6,000 salvage value. Select the journal entry for the acquisition of the machine: