Delilah Manufacturing Company,a calendar year reporting company,purchased a machine for $80,000 on January 1,2013.At the date of purchase,Delilah incurred the following additional costs:
$\begin{array}{lr}
\text { Loss on sale of old machinery } & \$ 1,500 \
\text { Freight-in } & 800 \
\text { Installation cost } & 2,300 \
\text { Sales tax paid on new machine } & 500 \
\text { Testing costs prior to regular operation } & 300
\end{array}$
The estimated salvage value of the machine was $5,000,and Delilah estimated the machine would have a useful life of 15 years,with depreciation being computed using the straight-line method.In January 2015,accessories costing $5,200 were added to the machine in order to reduce operating costs and improve the machine's output.These accessories neither prolonged the machine's life nor provided any additional salvage value.
Required:
What should Delilah record as depreciation expense for 2015?

Question

Delilah Manufacturing Company,a calendar year reporting company,purchased a machine for $80,000 on January 1,2013.At the date of purchase,Delilah incurred the following additional costs:
$\begin{array}{lr}
\text { Loss on sale of old machinery } & \$ 1,500 \
\text { Freight-in } & 800 \
\text { Installation cost } & 2,300 \
\text { Sales tax paid on new machine } & 500 \
\text { Testing costs prior to regular operation } & 300
\end{array}$ 
The estimated salvage value of the machine was $5,000,and Delilah estimated the machine would have a useful life of 15 years,with depreciation being computed using the straight-line method.In January 2015,accessories costing $5,200 were added to the machine in order to reduce operating costs and improve the machine's output.These accessories neither prolonged the machine's life nor provided any additional salvage value.
Required:
What should Delilah record as depreciation expense for 2015?

Quizplus · Accepted Answer

The Answer of Delilah Manufacturing Company,a calendar year reporting company,purchased a machine for $80,000 on January 1,2013.At the date of purchase,Delilah incurred the following additional costs:
$\begin{array}{lr}
\text { Loss on sale of old machinery } & \$ 1,500 \
\text { Freight-in } & 800 \
\text { Installation cost } & 2,300 \
\text { Sales tax paid on new machine } & 500 \
\text { Testing costs prior to regular operation } & 300
\end{array}$ 
The estimated salvage value of the machine was $5,000,and Delilah estimated the machine would have a useful life of 15 years,with depreciation being computed using the straight-line method.In January 2015,accessories costing $5,200 were added to the machine in order to reduce operating costs and improve the machine's output.These accessories neither prolonged the machine's life nor provided any additional salvage value.
Required:
What should Delilah record as depreciation expense for 2015?

Delilah Manufacturing Company,a Calendar Year Reporting Company,purchased a Machine for $80,000