On March 31, 2013, a Machine Costing $3,000,000 Was Acquired

question 118

Essay

On March 31, 2013, 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, 2018, the asset is sold for $550,000. The company uses the declining balance method at a rate of 40%. The company has a December 31 year-end. The company 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.
Prepare the entries to record depreciation expense for 2013 and 2014, and all entries required for 2018 as they relate to this asset.

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Definitions:

Triage

A system of sorting and identifying the severity of injuries.

Thermal Burn

A burn injury that results from exposure to high temperatures, such as from fire, steam, hot liquids, or sun exposure.

Characterized

Described or defined by distinctive qualities or features.

Residential Fires

Fires that occur in private homes, potentially causing damage to property, injury, or loss of life.