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XYZ Ltd paid $500,000 in cash to purchase a new machine on 1 July 2018. On 31 July 2018, XYZ paid $20,000 to upgrade the
XYZ Ltd paid $500,000 in cash to purchase a new machine on 1 July 2018. On 31 July 2018, XYZ paid $20,000 to upgrade the machine to improve its efficiency and $5,000 to install the machine. The machine was ready to be put into use on 1 September 2018. The company also incurred an advertising cost of $10,000 to promote their new products. On 30 December 2018, XYZ sent the machine to service to have its oil filters cleaned, and paid $1,000 for this service. Assume the machine has a useful life of 10 years and is depreciated using straight line method with a residual value of $45,000. Write the journal entry to record the depreciation expense for the machine for the year ended 30 June 2019 (assuming the financial year started on 1 July 2018 and ended on 30 June 2019)
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