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please solve 3. The Mammoet Construction Company purchased a piece of machinery on July 1, 2013 for $48 000. At this time it was estimated
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3. The Mammoet Construction Company purchased a piece of machinery on July 1, 2013 for $48 000. At this time it was estimated that the machine would be used for five years and would have a residual value of $5000 at that time. Before recording the 2015 amortization expense, the owners realized that this machinery would last only four years, and therefore revised the amortization expense calculation. On July 2, 2017, the machine broke down and rather than repair it, the company decided to sell it for $12000. a. Prepare the journal entry to record the purchase of the machine on July 1, 2013. b. Calculate the amortization charges that would appear on the 2013 and 2014 income, statements, using the straight line method of amortization. c. Show the journal entry for the 2013 amortization. d. Show how the machine would appear in the Mammoet Construction Company Balance Sheet on December 31, 2015, presuming the straight-line method of amortization is used Step by Step Solution
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