Onslow Co. purchases a used machine for $240,000 cash on January 2 and readies it for use the next day at an $10,000 cost. On January 3, it is installed on a required operating platform costing $2,000, and it is further readied for operations. The company predicts the machine will be used for six years and have a $28,800 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of.

1.Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is used for all costs incurred.

Record the the costs of $10,000 cash incurred on the used machine

Record the costs of $2,000 for an operating platform

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2.	Prepare journal entries to record depreciation of the machine at December 31.

(a)	Its first year in operation. (b)The year of its first disposal