A Company Paid $314,000 for a Machine That Was Expected

question 14

Essay

A company paid $314,000 for a machine that was expected to last five years and to have a residual value of $40,000. During the third year of the machine's life, $37,000 cash was paid for replacement parts that were expected to increase the machine's productivity by 10% each year. Prepare the journal entry to record the $37,000 cost incurred in the third year.

---

Definitions:

External Behaviors

Observable actions or reactions of individuals in response to external stimuli.

Neurotransmitter Serotonin

Serotonin is a neurotransmitter in the brain involved in regulating mood, appetite, sleep, memory, and learning; imbalances are linked to depression and other mood disorders.

Stressful Life Events

Significant occurrences in a person's life that disrupt the typical flow of daily life and can have profound effects on psychological and physiological well-being.

Professional Help

Assistance provided by individuals with specialized training and credentials, often in healthcare or counseling professionals, to address physical, mental, or emotional issues.