On March 31, 2019, a machine costing $3,000,000 was acquired. The company estimates that the asset will have an estimated useful life of five years and a residual value of $450,000. On April 1, 2024, the asset is sold for $550,000. The company uses the declining balance method at a rate of 40%. The company has a December 31 year-end. The company records partial depreciation in the year of acquisition or disposal based on the number of months the asset is available for use in the year.
Prepare the entries to record depreciation expense for 2019 and 2020, and all entries required for 2024 as they relate to this asset.

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The Answer of On March 31, 2019, a machine costing $3,000,000 was acquired. The company estimates that the asset will have an estimated useful life of five years and a residual value of $450,000. On April 1, 2024, the asset is sold for $550,000. The company uses the declining balance method at a rate of 40%. The company has a December 31 year-end. The company records partial depreciation in the year of acquisition or disposal based on the number of months the asset is available for use in the year.
Prepare the entries to record depreciation expense for 2019 and 2020, and all entries required for 2024 as they relate to this asset.

On March 31, 2019, a Machine Costing $3,000,000 Was Acquired