Nadir Company purchased a milling machine on January 3,Year 1 for $55,000.The machine was being depreciated on the straight-line method over an estimated useful life of 10 years,with $5,000 salvage value.At the beginning of Year 9,the company paid $15,000 to overhaul the machine.As a result of this expenditure,the company estimated that the remaining useful life of the machine was now 8 years with no salvage value.
Required:
What should be the depreciation expense recorded for this machine in Year 9 and what is the asset's December 31,Year 9 book value?

Question

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The Answer of Nadir Company purchased a milling machine on January 3,Year 1 for $55,000.The machine was being depreciated on the straight-line method over an estimated useful life of 10 years,with $5,000 salvage value.At the beginning of Year 9,the company paid $15,000 to overhaul the machine.As a result of this expenditure,the company estimated that the remaining useful life of the machine was now 8 years with no salvage value.
Required:
What should be the depreciation expense recorded for this machine in Year 9 and what is the asset's December 31,Year 9 book value?

Nadir Company Purchased a Milling Machine on January 3,Year 1