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Martin Motors purchased a machine that will help diagnose problems with engines. The machine cost $210,000 on January 10, 2010 and a residual value of $10,000 was anticipated, with a useful life of 5 years. These statistics are available:
DDBGross Profit 400,000Operating expenses 180,000Income before depreciation and taxes 220,000Depreciation 84,000Income before taxes 136,000Taxes (35%) 47,600Net Income 88,400
Martin Motors realized at the beginning of 1012 that the machine would last an additional 8 years. Martin Motors uses the DDB method.
Required:
Prepare the appropriate journal entry to record the depreciation expense for 2012
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