Question 4:

(a)Logo Company purchased a machine at a cost of $ 100,000 on 1/1/2014. The machine is expected to have a $2,000 salvage value at the end of its 5-year useful life.

Instructions:

1-Compute the depreciation rate.

2-Using the straight-line method, "prepare a" depreciation schedule, showing the annual depreciation expense for the machine over its 5-years life.

3-Record the depreciation expense on 31/12/2014 in the general journal.

Answer: