Question
Katie's Cards is a company that manufactures and sells cards and stationary. On 1/5/22, the company purchased a new printing press for $400,000. The expected
Katie's Cards is a company that manufactures and sells cards and stationary. On 1/5/22, the company purchased a new printing press for $400,000. The expected residual value is $20,000 and the useful life is 5 years. The company estimates that the press will be able to produce 200,000 cards over its useful life.
If Katie's Cards uses the straight line method of depreciation what amount would they record in 2023 (year 2) for the depreciation expense for this machine? (do not use $, commas or decimals in your answer)
What will be the balance for accumulated depreciation as of December 31, 2023 (end of year 2)? (do not use $, commas, or decimals in your answer)
What will be the carrying value as of December 31, 2023 (end of year 2)? (do not use $, commas, or decimals in your answer)
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