On January 1, 2021, The Fio Corporation purchased a machine for $360,000. The corporation estimated a 6-year useful life (or 80,000 units of useful life) and $40,000 residual/salvage value.
20,000 Units were produced in 2021.
6 points:
Complete the following table using the indicated depreciation method and year for each row of the table.
Method
Straight-line for 2021
Double-declining balance 2021
Double-declining balance 2022
Units-of-production 2021
Depreciation
expense
Accumulated
depreciation
Book value
4 points:
What would the journal entry be if the straight-line method was used and the machine was sold on 12/31/2021 for $230,000?