Solution-Prepare the journal entry to record depreciation

Prepare the journal entry to record depreciation expense

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Reference no: EM131792523

Q 1. At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts.

Machine A		Machine B	Machine C
Cost of the asset	$10,800	$40,000	$23,800
Installation costs	950	3,900	3,000
Renovation costs prior to use	750	3,500	4,000
Repairs after production began	700	900	2,500

By the end of the first year each machine had been operating 8,000 hours.

Required

Compute the cost of each machine

Q 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following

	Estimate
Machine	Life	Residual Value	Depreciation Method
A	5 years	$2,800	Straight-line
B	20,000 hours	2,400	Units-of-production
C	10 years	1,600	Double-declining-balance

Reference no: EM131792523

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Prepare the journal entry to record depreciation expense

Reference no: EM131792523

Reference no: EM131792523

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