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  3. the company purchased a machine on 1 january 2018.

The company purchased a machine on 1 January 2018. The information of the machine is...

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Accounting

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The company purchased a machine on 1 January 2018. The information of the machine is as follows: Costs on Acquisition on 1 February 2019: Machine Cost (paid in cash by purchaser) $25,000 Import Tax (paid in cash by purchaser) $2,000 Delivery Fees (paid in cash by purchaser) $3,000 Depreciation Method: Reducing balance method at the rate of 40% Residual value: $4,000 Useful Life: 5 Years 1. Prepare the journal entry for the purchase of the machine. (1 Marks) 2. Calculate the depreciation expense for the year 2019. (2 Marks) 3. On 1 January 2020, the machine was sold for $12,000. Prepare the journal entry for this sale. (4 Marks)

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