On January 2, 2016, Alpha Company acquired a new machine by signing a 5 year note for $62,000. The estimated service life is eight years and the total units of output to be 200,000. The estimated residual value is $8,000. Using the straight-line method, how much is: (Enter only whole dollar values.)
1. the 2017 depreciation expense
2. the accumulate depreciation after the fiscal year 2017 adjusting entry
3. the book value of the truck after the fiscal year 2017 adjusting entry
Ans-
| Cost of Machine | $62,0000 |
| Salvage Value | $8,000 |
| Life in years | 8 |
| 2017 Depreciation Expense | |
| Depreciation as per Straight Line Method= $62,000-$8,000)/ 8 | $6,750 |
| Accumulated Depreciation = Depreciation of 2016 +Depreciation of 2017= $6,750+6,750 | $13,500 |
| Book Value of the tuck =$62,000-$13,500 | $48,500 |
On January 2, 2016, Alpha Company acquired a new machine by signing a 5 year note...