Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine #
Machine #
Component Date of purchase Depreciation Method Cost Est. Residual Est.Life
Single metal housing Jan. SL $ $ yrs
Motor Jan. DDB yrs
Blade Jan. SL yrs
$
SL Straightline; DDB Doubledecliningbalance
On January the machine blade cracked and it was replaced with a new one costing $ purchased for cash the old blade was scrapped The new blade had an estimated residual value of $ and an estimated life of five years and would continue to be depreciated using the straightline method. During it was determined that the useful life on the metal housing should be increased to a total of years instead of years and that the residual value should be increased to $
Required:
Prepare the entry to record the purchase of the replacement blade.
Calculate the total depreciation expense to be recorded on Machine # for
