(Answered) Question - acme corp bought a machine for 350000 cash on

Accounting

Question - Acme Corp. bought a machine for $350,000 cash on August 1, 2012. It is expected to last for 10 years with a residual value of $35,000. A new base costing $20,000 was installed at the time of acquisition. Acme Corp's year end is December 31st.

Requirement 1 - Using the double declining balance method and fractional year monthly amortization, answer the following questions:

What is the Depreciation expense in year 2012:

What is the Depreciation expense in year 2013:

Requirement 2 - Using the straight line method and half year amortization for the year of acquisition and disposal, answer the following questions:

What is the Depreciation expense in year 2012:

What is the Depreciation expense in year 2013:

Requirement 3 - Using the information from Requirement 2, prepare the journal entry to record the disposition of the asset for $250,000 cash on February 25, 2014.

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