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On January 1, 2016, Woodstock, Inc. purchased a machine costing $40,500. Woodstock also paid $1,250 for transportation and installation. The expected useful life of the
On January 1, 2016, Woodstock, Inc. purchased a machine costing $40,500. Woodstock also paid $1,250 for transportation and installation. The expected useful life of the machine is 4 years and the residual value is $5,250. If Woodstock uses the straight-line depreciation method, which of the following statements is incorrect?
The annual depreciation expense is $9,125.
The December 31, 2017 book value was $18,250.
The December 31, 2016 book value was $32,625.
The December 31, 2018 accumulated depreciation balance was $27,375.
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