Flott Corp. purchased a machine on January 1, 2012, for $60,000. The company decided to depreciate the machine over a 8-year period using the straight-line method. The company estimated its residual value at $4,000. Show how the costs should be presented on the balance sheet and income statement for the full year ended June 30, 2014. Label the statements properly.

Question

Quizplus · Accepted Answer

The Answer of Flott Corp. purchased a machine on January 1, 2012, for $60,000. The company decided to depreciate the machine over a 8-year period using the straight-line method. The company estimated its residual value at $4,000. Show how the costs should be presented on the balance sheet and income statement for the full year ended June 30, 2014. Label the statements properly.