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Martin Motors purchased a machine that will help diagnose problems with engines. The machine cost $210,000

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Martin Motors purchased a machine that will help diagnose problems with engines. The machine cost $210,000 on January 10, 2010 and a residual value of $10,000 was anticipated, with a useful life of 5 years. These statistics are available;DDB;Gross Profit 400,000;Operating expenses 180,000;Income before depreciation and taxes 220,000;Depreciation 84,000;Income before taxes 136,000;Taxes (35%) 47,600;Net Income 88,400;Martin Motors realized at the beginning of 1012 that the machine would last an additional 8 years. Martin Motors uses the DDB method.;Required;Prepare the appropriate journal entry to record the depreciation expense for 2012

 

Paper#76443 | Written in 18-Jul-2015

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