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On January 1, 2013, Boston Company purchased a machine having an invoice price of 13,000. Boston paid transportation and installation costs totalling $3,000. During installation

On January 1, 2013, Boston Company purchased a machine having an invoice price of 13,000. Boston paid transportation and installation costs totalling $3,000. During installation the machine was damaged in an accident and repairs cost $500. The machine is estimated to have a 4-year useful life and a $1,400 residual value. Calculate depreciation expense and book value as of December 31, 2014, assuming double declining balance method of depreciation.

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