On January 1, 20X2, Miller Corp. purchased a milling machine for $450,000. It will be depreciated on a straight-line basis over 20 years. On January 1, 20X3, Miller purchased a heavy-duty lathe for $2,320,000, which will be depreciated on a straight-line basis over 40 years.

a) Compute Miller's depreciation expence for 20X2, 20X3, and 20X4. 20X2 20X3 20X4 $ $ $

b) Prepare the Fixed Asset portion of the balance sheet (for these two fixed assets) as of the end of 20X2, 20X3, and 20X4. (Hint: Subtract accumulated depreciation in each year from total original cost.)

20X2 20X3 20X4 $ $ $