On Jan. 1, 2014, a company placed into service a machine that had an acquisition cost of $60,000, a salvage value of $6,000, and an estimated useful life of 5 years. On Jan. 1, 2016, after two years of depreciation, the company revised the estimated useful life of the machine to 6 years. How much annual depreciation expense should be recognized for 2016, using straight-line depreciation?

Larkspur Inc. purchased machinery on January 1, 2017, for $ 91,200. The machinery is estimated to have a salvage value of $ 18,000 after a useful life of 6 years. (a) Compute 2017 depreciation expense using the straight-line method. Depreciation expense $4

Lockard Company purchased machinery on January 1, 2017, for $80,000. The machinery is estimated to have a salvage value of $8,000 after a useful life of 8 years. (a) Compute 2017 depreciation expense using the sum-of-the-years’-digits method. (b) Compute 2017 depreciation expense using the sum-of-the-years’-digits method, assuming the machinery was purchased on April 1, 2017.

Linton Company purchased a delivery truck for $S34,000 on January 1, 2014. The truck has an expected salvage value of $2,000, and is expected to be driven 100,000 miles over its estimated useful life of 10 years. Actual miles driven were 19,000 in 2014 and 16,000 in 2015. Instructions a) Compute depreciation expense for 2014 and 2015 using (1) the straight-line method and                                                              (2) the units-of-activity method                                                               (b) Assume that Linton uses the straight-line method, Prepare the journal entry to record 2014 depreciation.