Question
QUESTION 4: Wick Company purchased a machine for $50,000. Wick estimates that it will use the machine for 10 years and that at the end
QUESTION 4:
Wick Company purchased a machine for $50,000. Wick estimates that it will use the machine for 10 years and that at the end of its useful life the residual value will be $10,000.
After 5 years, Wick realized that the total useful life of the machine would probably only be 8 years, and they revised the residual value to $4,000. Wick uses the straight line method of depreciation.
Required:
Record the depreciation expense for Years 5 & 6.
| Date | Account Name | Debit | Credit |
| 12/31/Yr5 |
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| 12/31/Yr6 |
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*To justify your answers, please, show your work here
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