Dodge Company purchased a machine for $18,000 on January 1, 2008. The machine is expected...
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Dodge Company purchased a machine for $18,000 on January 1, 2008. The machine is expected to have a salvage value of $2,000 at the end of its 4-year useful life. A. Compute depreciation expense for year two using the straight-line method. B. What is the adjusting journal entry to record the depreciation computed in A? C. Compute the depreciation expense for year two using the double declining balance method. D. Assume that the machine is sold at the end of year 2 for $10,000. Compute the gain or loss on disposal of the machine assuming the machine was depreciated using double declining balance method.
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