Reference no: EM133017536

Question - Jolt Jeeps Incorporated is in the business of producing fuel efficient all terrain Jeeps. Jolt Jeeps purchases a new robotic assembly machine on April 30, 2012 for $7,250,000; the machine has an estimated life of 10 years, and a Jeep production capacity of 5,000,000 units. In the engine of the robotic assembly machine is a solid gold covering for the outer mantel of the gear box, this is to facilitate for shifting of the engine over time, the 24 Karat gold covering is used because it is soft and has more give than steel. This covering is worth $1,250,000 and can be resold on the open market.

Required - Prepare the appropriate journal entries using the straight-line method to account for the annual deprecation incurred on Jolt Jeeps assembly machine at December 31, 2012; December 31, 2013; December 31, 2014; and December 31, 2015.