On January 1,20X5, a company purchased a new machine for $130,000. They expected to use...
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On January 1,20X5, a company purchased a new machine for $130,000. They expected to use the machine for 5 years, down to a residue of 66,500. i) Prepare the journal entry necessary to record the purchase of the machine. ii) What is the book value of the machine on December 31,20X6 if the company uses the straight-line method of depreciation? iii) If the company uses the double declining balance method of depreciation, what is the depreciation expense for 206 ? iv) The company uses the straight-line method of depreciation and sells the machine for \$30,000 at the end of 4 years. State the journal entries to record the sale. v) Assume the company uses the straight-line method of depreciation. After recording two full years of depreciation, they decide that the machine will last a total of 6 years, rather than 5 . Residual value at the end of 6 years will be 58,000 . What is the 20X7 depreciation expense
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