This paper circulates around the core theme of Prepare the appropriate journal entry to record the depreciation expense for 2012. together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Martin Motors
purchased a machine that will help diagnose problems with engines. The machine
cost $210,000 on January 10, 2010 and a residual value of $10,000 was
anticipated, with a useful life of 5 years. These statistics are available:
|
DDB
|
|
Gross Profit
|
400,000
|
|
Operating
expenses
|
180,000
|
|
Income before
depreciation and taxes
|
220,000
|
|
Depreciation
|
84,000
|
|
Income before
taxes
|
136,000
|
|
Taxes (35%)
|
47,600
|
|
Net Income
|
88,400
|
Martin
Motors realized at the beginning of 1012 that the machine would last an
additional 8 years. Martin Motors uses the DDB method.
Prepare the
appropriate journal entry to record the depreciation expense for 2012
