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Journalize entries to record depreciation expense for year 1 and year 6.

05 / 03 / 2018 Assignment

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Assume ABC Inc. purchased machinery for $150,000 and
depreciated it on a straight-line basis over 15 years. The estimated residual
value was $15,000. After using the machinery for 5 years, the company realized
it will remain useful for only 5 more years and also revised the residual to
$12,000. Starting with the 6th year, the company began depreciating the
machinery over the newly revised life and residual value. Journalize entries to
record depreciation expense for year 1 and year 6.


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