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Question
On January 1, 2015, RCK Eye Center purchased a $240,000 laser. The company depreciated the laser straight line using a 7 year useful life and a salvage value of $30,000. On January 1, 2018, the company replaced the main power source of the laser at a cost of $35,000.
Following this replacement, the useful life was extended to a total life of 13 years (i.e., the replacement extended the useful life by 6 years) and salvage value is now estimated at $15,000. Please provide the journal entry that RCK Eye Center will record in 2018 for depreciation related to the laser (show any work).
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This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?
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