Whiting Company Purchased a Machine in 2007 for $150,000

question 32

Essay

Whiting Company purchased a machine in 2007 for $150,000. The machine was being depreciated by the straight-line method over an estimated useful life of 10 years, with no salvage value. At the beginning of 2012, after 5 years of use, Whiting paid $30,000 on maintenance to the machine. Whiting determined that $5,000 of this expense was normal maintenance and did not extend the life of the machine. However, the rest of the expenditure was an overhaul of the machine and was expected to extend the machine's estimated useful life by an additional 5 years. What would be the depreciation expense recorded for the above machine in 2012?

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