On January 1,a Company Purchased a Machine for $75,000 That

question 87

Essay

On January 1,a company purchased a machine for $75,000 that had a six-year useful life and a salvage value of $6,000.After three years of straight-line depreciation,on January 1,2013,the company paid $7,500 cash to improve the efficiency of the machine.The effect of the expenditure was to increase the productivity of the machine without increasing its remaining useful life or changing its salvage value.Straight-line depreciation is used throughout the machine's life.
a.Prepare the journal entry to record the $7,500 expenditure.
b.What amount of depreciation expense should be recorded for 2013?

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Definitions:

Genetic Basis

The underlying genetic composition that contributes to the traits or conditions of an organism.

Fraternal Twin

Siblings that are born at the same time but have developed from two different eggs fertilized by two different sperm, leading to them being genetically distinct, similar to regular siblings.

IQ Scores

Quantitative measures of a person's intelligence relative to others, based on standardized tests assessing various cognitive abilities.

Identical Twin

A twin that shares the same genetic material with their sibling due to having developed from a single fertilized egg that split.