On January 1, 2016, Bauer Co

question 24

Essay

On January 1, 2016, Bauer Co. had purchased a machine for $60,000. This machine had an estimated service life of eight years and an estimated residual value of $4,000. It has been depreciated by the straight-line method since acquisition. On January 1, 2019, it was determined that the remaining service life for this machine was nine years and that the residual value would be $3,000.
Required:
Record the depreciation expense for 2019.

---

Definitions:

Par Stock

The ideal quantity of specific inventory items that a business should hold to meet demand without overstocking.

Stockholders' Equity

Stockholders' Equity represents the ownership interest of shareholders in a corporation, calculated as the company's total assets minus its total liabilities.

Liability

A financial obligation or debt owed by a company to third parties, such as loans, accounts payable, or mortgages.

Date of Declaration

The official date on which a company's board of directors announces its intention to pay a dividend.