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A company purchase a piece of machinery on June 29, 2013 for $53,000. Freight cost to $800. It cost $1700 to install and test the machinery. At this time was estimated that machine would be used for 6 years and would have a residual value of $8,000 at that time.
Before reocrding the 2106 amortization, the onwer change the machinery from 6 years to only 5 years.
Question 1: Calculate the amortization charges that would appear on the 2013 and 2014 income statement, using the straight line method of amortization.
Question 2: Show the accumlation of the machine on December 2015.
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