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In January of 2016, Husky Grooming bought a state of the art shampoo making machine. The machine cost $32,500 and believed that it would be
In January of 2016, Husky Grooming bought a state of the art shampoo making machine. The machine cost $32,500 and believed that it would be useful for a total of 6 years or 10,000 hours. Managers also believed that the machine would have a $3,000 residual value. Data for the use of the machine occurred as follows: Year Machine Hours 2016 4,750 2017 3,500 2018 2,000 2019 2,125 If Husky grooming uses an activity based method for depreciation based on machine hours, what should Husky grooming record for: A) Net book value at the beginning of 2017 B) The journal entry to record depreciation expense at the end of 2018 (Note: we are looking for two answers. Please round answers to two decimal places if needed)
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