7) On January 1, Tiger Corp. paid $66,000 cash formachinery that was expected to last for 11 years.
- Is the machinery a current asset or a long-term asset?Why?
- Give Tiger’s journal entry to record the purchase ofthe machinery.
- Give Tiger’s journal entry to record depreciationexpense on the machinery for the first year.
- Give Tiger’s journal entry to record depreciationexpense on the machinery for the second year.
- What is the balance in accumulated depreciation atthe end of the first year? At the end of the second year?
- What is the net (book) value of the machinery at theend of the first year? At the end of the second year? At the end ofthe 11th year?
