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On March 31, 2019, a Machine Costing $3,000,000 Was Acquired

question 76

Essay

On March 31, 2019, a machine costing $3,000,000 was acquired. The company estimates that the asset will have an estimated useful life of five years and a residual value of $450,000. On April 1, 2024, the asset is sold for $550,000. The company uses straight-line depreciation. The company has a December 31 year-end, and records partial depreciation in the year of acquisition or disposal based on the number of months the asset is available for use in the year.
Required:
Prepare the entries to record depreciation expense for 2019 and 2020, and all entries required for 2024 as they relate to this asset.


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