Lone Co. purchased a machine on July 1, 2018, for $600,000. The machine has an estimated useful life of five years and a residual value of $80,000. The machine is being amortized from the date of acquisition by the 150% declining balance method. Calculate for the year ended December 31, 2018, the amount that Lone should record for amortization expense on this machine.

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The Answer of Lone Co. purchased a machine on July 1, 2018, for $600,000. The machine has an estimated useful life of five years and a residual value of $80,000. The machine is being amortized from the date of acquisition by the 150% declining balance method. Calculate for the year ended December 31, 2018, the amount that Lone should record for amortization expense on this machine.

Lone Co Purchased a Machine on July 1, 2018, for $600,000