Question # 3 (show your steps) Acme Corp. bought a machine for $350,000 cash on August 1, 2012. It is expected to last for 10 years with a residual value of $35,000. A new base costing $20,000 was installed at the time of acquisition. Acme Corp’s year end is December 31st. Requirement #1 – Using the double declining balance method and fractional year monthly amortization, answer the following questions: What is the Depreciation expense in year 2012: What is the Depreciation expense in year 2013: Requirement #2 – Using the straight line method and half year amortization for the year of acquisition and disposal, answer the following questions: What is the Depreciation expense in year 2012: What is the Depreciation expense in year 2013: Requirement #3 – Using the information from Requirment 2, prepare the journal entry to record the disposition of the asset for $250,000 cash on February 25, 2014.
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