Expenditures After Acquisition

Roanoke Manufacturing placed a robotic arm on a large assembly machine on January 1. At that time, the assembly machine was expected to last another 3 years. The following information is available concerning the assembly machine.

Cost, assembly machine	$750,000
Accumulated depreciation, Jan. 1	480,000

The robotic arm cost $210,000 and was expected to extend the useful life of the machine by 3 years. Therefore, the useful life of the assembly machine, after the arm replacement, is 6 years. The assembly machine is expected to have a residual value of $126,000 at the end of its useful life.

Required:

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1. Prepare the journal entry necessary to record the addition of the robotic arm. If an amount box does not require an entry, leave it blank.

Jan. 1	Accounts PayableAccumulated DepreciationCashDepreciation ExpenseEquipment	- Select -	- Select -
	Accounts PayableAccumulated DepreciationAssembly MachineCashDepreciation Expense	- Select -	- Select -

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2. Compute the revised amount of depreciation expense for the machine using the straight-line method. $fill in the blank 381f9f00efc0ff0_1

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Prepare the necessary journal entry to record depreciation expense. If an amount box does not require an entry, leave it blank.

Dec. 31	Accounts PayableAccumulated DepreciationAssembly MachineCashDepreciation Expense	- Select -	- Select -
	Accounts PayableAccumulated DepreciationAssembly MachineCashDepreciation Expense	- Select -	- Select -

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3. What is the book value of the machine at December 31? $fill in the blank c28e6bffa06c03d_1