Prepare the appropriate journal entry to record the depreciation expense for 2012.

Prepare the appropriate journal entry to record the depreciation expense for 2012.

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

Price: £ 45

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